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Essay text:
Within this paper to be discussed will be the demand, supply and cause of price fluctuation of residential heating oil.
The law of demand states that the price of a particular product is related to the amount of demand for the product. As the demand grows the price may seem to drop while if the demand decreases the price can increase. Changes in demand can be caused by a number of contributing factors. As our book states the events that can bring change to demand include, society's income where a rise in income increases the demand for the goods, the price of goods in relation to the prices of related goods, tastes as a persons taste changes the demand can change without affecting the price, expectations with spending based upon future incomes or loss, taxes levied as an increased cost it thereby reduces demand while subsidies to consumers will show almost an opposite affect...
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