Supply and demand are utterly independent of one another. You would know this if you were a quarter as knowledgeable on the subject as you claim to be.
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Seconded.
Balegrim⌠I hear there are some good economics tutorials you could look up.
Supply and Demand are not independent of one another. This is such an ignorant statement. The whole concept of Supply and Demand is contingent on the relationship between them. This is essentially equilibrium, but equilibrium is affected by multiple factors. When price is above the equilibrium, there is excess supply. When there is excess supply there is reduced demand which decreases the price point toward the equilibrium. If there is a shortage in supply, demand increases, and the price pushes upward toward the equilibrium. While the variables may be independent, their relationship is forever connected in a tug -of-war.
Please note there are three separate factors described above:
- availability of commodities, products, and services (supply)
- desire (demand)
- price
The original conversation was with regards to the effects of increased amounts of commodities, products, and services available as a result of layering. This would increase the supply, reducing the demand, and thus, pushing the price downward toward the equilibrium. Simply put, the increased amount of goods sold on the AH (due to exponential availability) would decrease the cost of said goods because of how this relationship works. Basic economics. You keep telling me Iâm wrong. Iâm telling you that youâre a buffoon.
2 Likes
You should probably look into them, then.
Two separate statements:
- this could become a problem, so weâll fix it.
- right now, itâs not a problem.
That wasnât so hard to glean without the predetermined bias people seem to have, where they absolutely trust random people on the Internet based entirely on overly dramatic statements backed up with unverified screenshots.
Balegrim,
10 people want a product (demand)
7 people offer the product today (supply)
Next day
10 people want a product (demand)
15 people offer a product (supply)
See? Supply changed but demand stayed the same. The only difference between the two days would be the price paid for the product.
In your scenario on day 2 when supply went up you are insisting that demand decrease. It doesnât have to. It could stay the same or even increase.
Try this:
Day 3:
12 people want a product (demand)
15 people offer a product (supply)
Now both supply AND demand have risen over day one, but not at the same rate which means prices should still be less than day one but probably more than day 2.
Have a nice day.
3 Likes
I donât think you get it. In general thereâs 3-4 different layers. You get an invite from someone, and thereâs 4 layers up, youâve got a 25% chance of layering into the desired layerâŚor 1/4. It is how layering works.
I understand fine, you just worded it strangely. I get what you are trying to say now, you were saying ânew to youâ, not ânewâ.
has nothing to do with âtypical alliance playerâ. It has everything to do with those rushing the game, cheating the system that blizzard put us in after telling us âauthentic vanillaâ as much as possible. Layers were NOT a part of vanilla, and of all things to ruin that authentic flavor, extremely high population servers with layers, is the one way to kill it that will do so without any doubts.
Fools on my server are trying to sell LESSER magic wands for 2 gold. They donât have a hope in you know where of selling them, but just posting that mess in trade chat, and spamming it every 30 seconds is ridiculous. No one that needs the items can afford them, due to the over saturated AH.
Sure, stuff is cheap now, too cheap in many cases, but dang, get a green and watch what happens. Level 7 stuff 60 silver and more. Find me a level 7 player who can afford that, and iâll show you someone who either bought gold, cheated to get gold via bfa to classic gold trades, or abused the layer system to get gold.
Itâs ridiculous.
Everyone saw this coming.
Literally everyone. Blizzard still did it anyway.
Theyâd rather have a devastated economy and scuffed experience for players than have more servers and need to merge them.
Relax zzzâŚ
Considering 90% of farming has been done in inatances, not sure how layering has changed much.
Good god, man. How obtuse are you? Price only changes when the relationship between supply and demand changes. This is correlation. If demand shifts downward and quantities stay the same, then you have a surplus which drives prices down. The number of products stays the same but the shift in demand alters the price, which will in turn affect the number of goods produced and/or sold (or push the price point closer to zero). The actual price may not change in one day, but the shift happens in real time. The price change on day 3 occurs because of the trend that began on day 1.
Markets fluctuate all the time, but the law of supply and demand never changes. In WoW, it will easily and almost always happen in one day (rampant undercutting). Your tedious, trifling little exercise is nothing more than a desperate attempt to split hairs.
what he says is true⌠you have basically 2+ economies worth of materials in the auction house. donât get me wrong later after layering will be taken out the economy will bounce back.
which btw right now is a good time to invest in bank altâs and just stack crap loads of materials to re-sell after layering is reduced as the stages of classic drop.
Iâd be shocked if youâve ever taken an econ class, much less passed it.
The ârelationship,â as you put it, changing between supply and demand can be caused simply by supply changing, by itself. Or demand changing, by itself. Supply changing does NOT mean demand changes. Demand changing does NOT automatically mean supply changes. That entire premise of yours means nothing and is wrong. The only thing that changes is price. Surplus or shortage is entirely irrelevant to the fundamental understanding that a change in supply does not mean a change in demand. Ever. Ever!!
If 100 people want the widget, it doesnât matter if you have one widget, or a million widgets. 100 people want the widget. The only thing that changes is the price of the damn widget (what one guy is willing to pay for the only available widget). Demand has nothing to do with how many people actually buy the widget.
My last attempt before charging you dude.
You both have to be the dumbest people Iâve ever encountered on these forums. The price only changes because of the relationship between supply and demand. Iâd love to see how much youâre going to charge me without even understanding how to formulate a price point.
i think they went to the aoc school of economics
Dude I am personally doing this as well as everyone on my friends list. I know its a problem because I personally get the whispers all day from people layering themselves and getting extra farm to get their epic mounts at inhuman speeds. You can go on twitch and ask any streamer theyâll all tell you the same thing I am right now.
Addons are a symptom. At least a couple of people keep throwing around econimic terms as if the servers had fully functional economies.
There are lots of supply due to populations 10 x vanilla.
But people are conflating demand with desire. In economics its not demand till people have money to buy it. Till most people have thier mounts, till we have lot of 60âs flush with cash the AH wont get any better.
More farming and more vendoring actually increase money in the economy helping the problem. Yes some people will bank stuff and make more money later but that money wont be worth as much because prices will go up.
If you think about the amount of money in the economy as a pool we are filling the grand canyon. Its going to take a while before there is enough disposable income to support AH prices that people expect. And even then the glut in supply will have to be resolved before it stabilizes.
The sad thing is most of the people that have all thise auctions posted would do the economy more good if theyd just vendor all of it and level.
Every single big streamer (above average 1k viewers) has video of them using layering to get extra nodes and creatures to skin. Especially ones like Monkeynews and Sodapoppin. There is countless amounts of video evidence right there for you guys.