Curse

Sorn Xarann · Mar 12, 2008, 10:00 PM // 22:00

Quote:

Originally Posted by Swamp Fox

(not to sound smart@$$) but i have taken a college level economics class(in college) and if you have more of something(supply) than the amount the people want(demand) then prices will decrease, and i believe the problem is just because we(GW pvers as a whole) farm uw for ectos way too much, my solution would be to limit the amount of times you can enter UW a day

this is only my view and i hope that it never happens, and sorry if someone else already said this

Thank you, thats some constructive criticism and not a bad idea if you ask me! That is if Anet is interested in solving the economy puzzle.

nvmu · Mar 12, 2008, 10:01 PM // 22:01

Quote:

Originally Posted by quickmonty

Apparently you don't. That just defies all logic. If you flood the market with a product the price will go DOWN!

yes if you flood the market, and flooding the market would be a outside factor that the laws of supply and demand do not take into consideration
and eventualy mosy products find there equilibrium point and get to a constent price

Zaris · Mar 12, 2008, 10:02 PM // 22:02

if the ecto prices gets any lower, the ecto miners will be beaten even harder so they work faster

Stolen Souls · Mar 12, 2008, 10:02 PM // 22:02

Quote:

Originally Posted by Faction Gambler

This thread fails.

Guild Wars economy CANNOT be measured using real world economic models.

Bingo.

Guild wars has its own rules. And it has always been this way.

Demand > Supply = High Price (Crystalline Sword)
Demand < Supply = Low Price (CoF Greens)

Ectos right now are in the middle somewhere. They are hugely overfarmed, and DO FLOOD the market. Thing that's been keeping their price stable is the huge demand for them. However, that demand is starting to fade, while the supply stays the same, or increases. Which means...the price goes down.

Want ecto prices to go back up? Stop farming the damn things!!

Faction Gambler · Mar 12, 2008, 10:06 PM // 22:06

Quote:

Originally Posted by Zaris

if the ecto prices gets any lower, the ecto miners will be beaten even harder so they work faster

For what? To flood the market even more? This makes no sense.

nvmu · Mar 12, 2008, 10:07 PM // 22:07

Quote:

Originally Posted by MMSDome

What about Diamonds? You dont need to buy diamonds but people still pay high prices for them. The fact of the matter is people think they are rare so they pay a lot for them but they are not rare. Diamond mine owners control the supply of diamonds they let out which increases they cost, making them more money.

When they choke the supply and price goes up it kind of makes you wonder.

Also if Crystalline swords were common drops are you saying that the price would go up further because according to what you are saying is that since there is little supply of crystalline swords they should be really cheap. Guess that makes PERFECT SENSE!

once again things tend to find equilibirum points, and the initial price do to rarity or w/e must always be taken into consideration, also if there is no demand for something that is usualy not taken into consideration

Jetdoc · Mar 12, 2008, 10:10 PM // 22:10

Quote:

Originally Posted by Faction Gambler

For what? To flood the market even more? This makes no sense.

I guess what he's saying is that to maintain their same income stream, they'll have to farm even more (e.g. if they sold 100 ecto at 5K a pop before, to make the same 500K they'll need to sell 125 ecto at 4K a pop).

I'm not sure if they'll do that or if they'll just look for another income source.

Zaris · Mar 12, 2008, 10:10 PM // 22:10

Quote:

Originally Posted by Zaris

if the ecto prices gets any lower, the ecto miners will be beaten even harder so they work faster

Quote:

Originally Posted by Faction Gambler

For what? To flood the market even more? This makes no sense.

They are slaves and get beaten if they don't make 500k a day.
Thats why ectos are red, they are blood ectos!

FXCW · Mar 12, 2008, 10:16 PM // 22:16

If you know nothing about economics and the laws of supply and demand, and it seems quite apparent a few of you don't, then this explains it very well.

You Look Grim · Mar 12, 2008, 10:16 PM // 22:16

Quote:

Originally Posted by dies like fish

Ectonomics...

heh wow that's clever.
but ecto prices don't really seem to be dropping for me
i still see people selling for 4.6-4.8k (as a reasonable price)

Wyat Hawke · Mar 12, 2008, 10:19 PM // 22:19

Quote:

Guild wars has its own rules. And it has always been this way.

Demand > Supply = High Price (Crystalline Sword)
Demand < Supply = Low Price (CoF Greens)

Can't we just settle for this, and leave it be?

nvmu · Mar 12, 2008, 10:20 PM // 22:20

MY LAST POST ON THIS TOPIC

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Supply states that more output will be offered for sale at higher prices and less at lower prices.

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Demand states that people will buy more of a product at a lower price than they will buy at a higher price, if nothing else changes.

As you read, keep in mind the difference between a change in demand and a change in the quantity demanded. A change in demand is a result of a change in the determinants of demand. A change in the quantity demanded is a result of a change in price.

Stolen Souls · Mar 12, 2008, 10:22 PM // 22:22

REAL-LIFE ECONOMY DOES NOT APPLY TO GUILD WARS!!! ffs!!

GUILD WARS:

Demand > Supply = High Price (Crystalline Sword)
Demand < Supply = Low Price (CoF Greens)

^how it's always been. How it will remain. Don't need any fancy stuff or real-world comparisons. That is...just how it is. Plain and simple. The MORE of something there is in game, the LOWER the price will be (CoF Greens). The LESS of something there is, the HIGHER the price will be (Crystalline). Ectos are somewhere in between right now, because the demand AND supply are both very high. HOWEVER, the supply is slooooowly pulling ahead of the demand, hence the gradual price drop.

Again, anyone who wants the price to go back up...tell everyone and their mother's brother's cousin to stop farming the things!

Faction Gambler · Mar 12, 2008, 10:25 PM // 22:25

Quote:

Originally Posted by nvmu

MY LAST POST ON THIS TOPIC

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Supply states that more output will be offered for sale at higher prices and less at lower prices.

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Demand states that people will buy more of a product at a lower price than they will buy at a higher price, if nothing else changes.

As you read, keep in mind the difference between a change in demand and a change in the quantity demanded. A change in demand is a result of a change in the determinants of demand. A change in the quantity demanded is a result of a change in price.

Just a tip: No offense but quit quoting stuff that you barely understand. Thats how people fail.

My DEMAND is for this topic to be closed hopefully shall be met when a moderator is SUPPLIED. May we reach that EQUILIBRIUM.

quickmonty · Mar 12, 2008, 10:27 PM // 22:27

Quote:

Originally Posted by nvmu

MY LAST POST ON THIS TOPIC

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Supply states that more output will be offered for sale at higher prices and less at lower prices.

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Demand states that people will buy more of a product at a lower price than they will buy at a higher price, if nothing else changes.

As you read, keep in mind the difference between a change in demand and a change in the quantity demanded. A change in demand is a result of a change in the determinants of demand. A change in the quantity demanded is a result of a change in price.

Hey! I think he finally got it right!

Jetdoc · Mar 12, 2008, 10:40 PM // 22:40

Quote:

Originally Posted by nvmu

MY LAST POST ON THIS TOPIC

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Supply states that more output will be offered for sale at higher prices and less at lower prices.

http://www.glencoe.com/sec/socialstu.../overview.html
The Law of Demand states that people will buy more of a product at a lower price than they will buy at a higher price, if nothing else changes.

As you read, keep in mind the difference between a change in demand and a change in the quantity demanded. A change in demand is a result of a change in the determinants of demand. A change in the quantity demanded is a result of a change in price.

Exactly - you had your sentences reversed.

In your original post...

Quote:

Originally Posted by nvmu

As supply increase price increases
As demand increases price decreases

That is absolutely incorrect.

However, what I think you're trying to say is...

"As prices increase, supply will start to increase in order to capitalize on the higher prices."

"As prices decrease, demand will start to increase in order to capitalize on the lower prices."

That's the true cause and effect.

Dante the Warlord · Mar 12, 2008, 11:04 PM // 23:04

Quote:

Originally Posted by nvmu

As supply increase price increases
As demand increases price decreases

trying to find a graph of this, but the ones on wikipedia are links so i can't upload it here because it won't let me copy the link to that graph

Im pretty sure thats completely wrong...

What you are suggesting is that as demand goes up, prices will keep going down. So looking at something like the wii, if people really want that and it gets sold out almost everytime a store restocks, they are going to make the wii cheaper and cheaper everyday? Ok.... right im going out to buy my $5 wii, later all....

The right answer would be as people want it more, the price will increase since the rarity of the item will be more since it will fly off the shelves more. Now when there is less of them on the shelves, people will be buying higher, just like my friend who sold his wii for like $500 near the first time it came out (bastard)

.

I too am in high school

As for ecto pricing, its basically demand increases value increases ( i like to think of ectos like stocks)

oneofthedragon · Mar 12, 2008, 11:15 PM // 23:15

Ecto prices are based off the rare material trader prices.
No one sells to the merchant because you get less money.
No one buys from the merchant because it costs more money.
Other than the merchant there is no real way to price ectos.
Therefore supply/demand are thrown out the window, because there is no way to gauge either one.

If someone had a large amount of money or ectos they could quite possibly crash the economy, if you buy ectos and they peak at 10kea, you would get a significant profit because most would be bought at under 10k, on average about 7kea, so you would get~3k profit on ea. If you sold them to the rare mat trader, you could crash the price to ~1k or so, buy massive amounts of ectos, and make a huge profit by jacking up the merchant price. Of course this depends on the boundaries Anet has on ecto prices, I know that they can climb to 10k but I don't know how far they will fall... Who knows... I doubt anyone has the money for this... but think of the possibilities

Inger · Mar 12, 2008, 11:49 PM // 23:49

Quote:

Originally Posted by nvmu

except if you look at the wikipedia page that someone else posted the ink to the graph is x= quantity and y= price
graphs are read x,y not y,x so it would be as supply increases price increases, as demand increases price decreases ( i am also in ap physics, we do alot with graphs and proportions, the way you are syaing it x=price and y= supply/demand, which makes no logical sense seeing that supply/demand determines price and not the other way around)

I don't mean to sound negative in any way towards you but YOU are the one totally reading the graph completely wrong. That graph in wikipedia is showing a correlation between demand and supply. It is NOT interpreted as an x vs. y graph which is what you are reading it as. The graph is not read as, "as quantity increases, prices decrease." which is how the graph would be read in terms of an x vs. y graph (with respect to the demand line). The problem with how you're looking at the graph is you're most likely used to physics type graphs with a manipulated variable plotted on the x axis, and a responding variable correspondingly recorded on the y-axis.

The real interpretation of the graph (and this is clearly depicted in the text below the graph that is included in the wikipedia article) is its showing a correlation between what happens with price and quantity as the supply and demand on the graph are changed. You have to think of both the x and y axis as responding variables. The y-axis (price) is not a responding variable according to quantity. The real responding variables are how demand and supply correlate to each other as well as how the variables in each axis respond according to each change.

Basically its showing a situation at the very start of the graph that demand is currently high for a particular item, while supply is low. With respect to these 2 conditions, price is high for that item (since demand for that item is high), correspondingly supply for that item is low and thus quantity is low. As u see demand decrease, price correspondingly decreases and supply increases, quantity has increased. These 2 lines(demand and supply) are considered with respect to one another, since supply has increased demand decreases (basically people who want the item have gotten it, thus eliminating their demand for it, supply is not low so demand does not remain high)

Once again to summarize, the graph is not an x vs. y graph, and don't say there is no such thing because there are. The axises are responding variables according to how supply and demand are changed. Its not reading that price is high, so demand is high. Think about that for a moment, if the price of an item is ridiculously high, are thousands of people wanting it?. Use an example of a pencil... if a standard HB wooden pencil costs 100 dollars... are there gonna be thousands of people lining up for it with a huge demand to get this 100 dollar pencil? I think not.

Ekelon · Mar 12, 2008, 11:53 PM // 23:53

Quote:

Originally Posted by oneofthedragon

Ecto prices are based off the rare material trader prices.
No one sells to the merchant because you get less money.
No one buys from the merchant because it costs more money.
Other than the merchant there is no real way to price ectos.
Therefore supply/demand are thrown out the window, because there is no way to gauge either one.

Exactly. Therefore, with your logic, we must conclude that Anet changes them. Whenever Gaile feels like, she'll be like "Hmm, I think I want ectos to be 4.8k each today." And so they drop to 4.8k each!