Choose an electricity market about which you have access to sufficient information, preferably the same market that you studied for the problems of Chapter 1

1)The power or electricity market is made to provide electricity to consumers at affordable rates. One of the greatest electricity markets across the globe is the United States. The electricity market here is done in terms of retail and wholesale packages.

2)Most of the electricity markets are not regulated by the government; they are monopolized; in this instance, they have shifted from being regulated by the state. However, there are few ways to implement these markets in the United States. The united states congress has created some policies to implement these markets. The electricity bodies should maintain and approve facilities that distribute electricity to avoid power outage. Another implementation is to ensure that consumers are not exploited by hiking prices and undefined electricity bills. These markets shall undergo huge penalties in cases where they violate energy statutes. The major mechanism used electricity spot markets is rationing and signaling; in this case, the prices are rationed to indicate supply outstrip while signaling alerts the sellers there is new demand at a certain region.