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Originally Posted by StrykerTFFD
You clearly don't understand supply and demand. If Supply is Up, Demand is Down, Price is Down. If Supply is Low, Demand is Up, Price is Up. That's Supply and Demand and only applies to this case in this way: The rare items are being horded by the older, higher level players. They CONTROL the Supply and can put whatever Price they want reguardless of the Demand. The younger players either pay the high prices or go without. This also forces younger players who find items like diamonds to use the higher prices on diamonds to SURVIVE as they have no other means of income.
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Don't think that I dont understand it. I guess you don't got what i said.
First of all:
Demand means the quantity of a given article which would be taken at a given price.
Supply means the quantity of that article which could be had at that price. You can follow? Okay!
Supply and demand can be thought of in terms of individual people interacting at a market. Suppose the following 3 people participate in this simplified economy:
Cathy is willing to pay 3000 plats for a dia.
Emily is willing to sell a dia for 1500 plats.
Fred is willing to sell a dia for 2500 plats.
There are many possible trades that would be mutually agreeable to both people, but not all of them will happen.
For example, Cathy and Fred would be interested in trading with each other for any price between 2500 and 3000. If the price is above 3000, Cathy is not interested, since the price is too high. If the price is below 2500, Fred is not interested since the price is too low. However at the market, Cathy will discover that there are other sellers willing to sell at well below 2500, so she will not trade with Fred at all. In an efficient market, each seller will get as high a price as possible, and each buyer will get as low a price as possible.
Imagine that Cathy and Fred are bartering over the price. Fred offers 2500 for a diamond. Before Cathy can agree, Emily offers a dia for 2400. Fred is not willing to sell at 2400, so he drops out.
Maybe you got it now what I am talking about.