Not wrong but not right either... A deflation is a general price drop. it is a situation, not necessary to be a decrease in money supply, so saying deflation as a cause in fact doesnt make any sense at all. demand and supply of the goods itself is one of the many factors determine the price, but not the only factor. Remember the real price is determine by the value of money? The supply of money also affects the price. have a look at dlongs, mystic robes and cannon, the is virtually no increase at supply at all, but the price is even lower than its original price, so supply doesnt mean anything... In your example, if you are assuming everything doesnt change, in fact the price of whip will rise, because everyone got 30mil and there is only 1000 whips, 30mil is just worth like 1gp by ratio, because having 30mil is no longer rich. Increasing the supply of whip certainly will drop whip price, but how often can you get a whip? comparing to the rising demand for whip? It is not rune, you look around mine and smith a bit and got a plate...