When an object like a stone is dropped into a ripple tank, it displaces the water, creating a depression in the surface. This displacement leads to oscillations as the surface tension forces the water to return to its original shape, causing adjacent particles to also move up and down. Energy is transferred from particle to particle, resulting in the formation of visible ripples. The particles do not move from their positions but oscillate in place, creating a wave pattern. The interaction of forces around the radius of the object generates a circular ripple effect.