Chapter 1,The basic cycle

 

 

 

 

 

Ok.Lots of my newb friends kept asking me so ill just help the comunity out.This is how the runescape economy works.A resource is put into circulation through resource gathering skills such as fishing and wood cutting.Those resources are refined through refining skills such as fletching or cooking.Those refined items are sold to the comunity so the community can use them to their liking such as combat or for non refined resources,fire making.

 

 

 

 

 

Chapter 2,More in depth

 

 

 

So thats the cycle.Gathered resources turn to refined resources that turn to items or tools for combat.Though thats not the only way resources and refined items go into the community.The spoils of monsters such as bones or hides also go in and crafters use it to make range armour,prayer people use it to raise their prayer.But sometimes the resources dont make it through the 3 step cycle.Some get bought as exp raisers,others get bought for some other reasons,and finally some dont even make it into the market called the Grand Exchange.Some people just do the gathering,refining,and using by themselves

 

 

 

Chapter 3,Supply and Demand

 

 

 

So you all understand the basics of economic cycle right?Right?No?Then go read it again or go do something else.Ok.For those of you who are still here and understand the basics of Runescape economic cycles,time to discuss supply and demand.The refiners want the resources to refine and get exp.Thats demand.If 1 refiner wants 100 resources,then the gatherers must get 100 of that resource to keep it in balance.If they get more than 100 and nobody else wants it then that time was wasted.If they get less than 100 and everyone wants 100 then the price of the product goes up.Thats supply and demand.Also if the community wants 100 rune longs and the smithers cant make 100 rune longs,then the rune long's price goes up.Also if there are too many in the economy,the price goes down

 

 

 

 

 

Chapter 4,Market Crashes

 

 

 

Ok the market crashes dont happen often because jagex does a good job in keeping the economy steady.But first,Market Crashes are when a resource that the economy is revolved around just crashes to a much lower price or sky rockets to a super high price.when that happens,everything else just crashes along with it.For example,say yew logs are the main resource units,then the price sky rockets,everything made out of yew or need yews to make also sky rocket which then inturn makes items related to it crash as well.Say yews are now 600 gp each.Then yew longs are 5k each,then less people range so less people make range armour,so the range armours price sky rockets,then the mage armour sky rockets since melee and magic are the only 2 left.Also because mage beats melee.Oh and sky rocketing price is inflation and crashes are deflation

 

 

 

 

 

Chapter 5,Autoers :ohnoes:

 

 

 

Well sky rockets happen alot and deflation only happens when a better version of that armour comes out,or that other version is less anticipated.But a big big big deflation or inflation can happen when autoers make too much of that resource that the normal players cant make a good profit.Which means they will stop refining and that means only a few people who like smithing or fletching or whatever you want to refine will refine it.which means a inflation will happen to armour or weapons.After all,resource gatherers ussually have a decent refining level too.

 

 

 

 

 

 

 

Now you know how the economy works on Runescape.Ive explained it to the best of my abilitys and i just got started knowing how the economy on runescape works too,.

Wait, What? -.-

 

 

 

I think most of us understand the system of Economy, if anything my guess is that this belongs in the Archive of Wisdom (AOW) Thread.

 

A.O.W

The autoers section is completely wrong anyway, those inflations and deflations are victims of merchanting and skiller clans, respectively.

you shouldn't really use the term newb, as at level 68 you are most likely new to the game as well.

 

and jagex does not balance the economy unless absolutely neccesary. the market crashes are due to efficiency increase in certain skill aspects, allowing cheaper or quicker production of raw materials or skiller/merchent clans purposely tampering with things :roll: