Duke_Freedom Posted January 17, 2007 Share Posted January 17, 2007 Yeah, you have a point in your first statement, but I disagree with what I quoted. If somebody sells their blue phat, then they change the market by increasing the supply, alching the phat will prevent them from doing so thus no change is made. Hm the idea of supply & demand is something like this however: Price --- Supply - Demand 450mil - 3 ------ 8 460mil - 6 ------ 6 470mil - 7 ------ 4 480mil - 9 ------ 2 The supply & demand numbers here are totals, stating how many people are willing to sell / buy at those prices. Logically supply is higher at higher prices and demand is lower at higher prices. The theory now says that the price equilibrium is there where supply equals demand and this is true for 460mil. I'm sure you'll agree so far. Now what if two people who initially wanted to sell their phats for 450mil and one person who initially wanted to sell it for 460mil suddenly alched their hats. We would now have: Price --- Supply - Demand 450mil - 1 ------ 8 460mil - 3 ------ 6 470mil - 4 ------ 4 480mil - 9 ------ 2 The price equilibrium, defined as supply = demand, is now 470mil! Aha, the prices have risen. Ok the example is stupid :), but I hope this clearifies the underlying idea somewhat. In text I could explain it differently by using the example of a merchant who trades blue party hats but who doesn't keep them himself. Sure he owns some party hats every now and then, but only for the purpose of reselling it (almost) immediately. In theory, and as far as the market is really concerned, he doesn't own any phats at any time, even when he does have a few. At some point he owns 5 phats which he also plans to resell today again, but something goes very wrong. He was alching yew longs and accidentally alched all his phats (yes my examples can get even more stupid :D). Anyway, the point is that now 5 phats, which were actually 'in circulation' are now gone from the market. Thus there is an (indirect) effect on the price of the phat as there is an supply of 5 phats less on the market. The value of my bank at its height. Estimated value at the peak of the rares market: 250 billion+.Most likely the largest trade in RuneScape ever. Estimated value at the peak of the rares market: 70 billion+. Link to comment Share on other sites More sharing options...
Danlee Posted January 18, 2007 Share Posted January 18, 2007 im not doing the math - just a guess but im betting the p -hats go up bout 400k a day so by the end of the week they went up bout 2mil - end of the year since theres 52 weeks in a year 104mill a year oops i did the math-- dangit The sentence below is false.The sentence above is true. Link to comment Share on other sites More sharing options...
Star_Fox Posted January 18, 2007 Share Posted January 18, 2007 hes just a spammer anyway, I would be more concerned with phat prices, blue is around 450m right now, Im wondering what it would be by the end of 07. good thought what did they start at in '06? in 2005 they sold for 3m ea. right now they roughly go for 12m. so in a year my best guesstimate would be 17m ea. imo easter eggs arent worth investing. (edit) sorry couldnt do the math properly Link to comment Share on other sites More sharing options...
malo2 Posted January 18, 2007 Share Posted January 18, 2007 Yeah, you have a point in your first statement, but I disagree with what I quoted. If somebody sells their blue phat, then they change the market by increasing the supply, alching the phat will prevent them from doing so thus no change is made. Hm the idea of supply & demand is something like this however: Price --- Supply - Demand 450mil - 3 ------ 8 460mil - 6 ------ 6 470mil - 7 ------ 4 480mil - 9 ------ 2 The supply & demand numbers here are totals, stating how many people are willing to sell / buy at those prices. Logically supply is higher at higher prices and demand is lower at higher prices. The theory now says that the price equilibrium is there where supply equals demand and this is true for 460mil. I'm sure you'll agree so far. Now what if two people who initially wanted to sell their phats for 450mil and one person who initially wanted to sell it for 460mil suddenly alched their hats. We would now have: Price --- Supply - Demand 450mil - 1 ------ 8 460mil - 3 ------ 6 470mil - 4 ------ 4 480mil - 9 ------ 2 The price equilibrium, defined as supply = demand, is now 470mil! Aha, the prices have risen. Ok the example is stupid :), but I hope this clearifies the underlying idea somewhat. In text I could explain it differently by using the example of a merchant who trades blue party hats but who doesn't keep them himself. Sure he owns some party hats every now and then, but only for the purpose of reselling it (almost) immediately. In theory, and as far as the market is really concerned, he doesn't own any phats at any time, even when he does have a few. At some point he owns 5 phats which he also plans to resell today again, but something goes very wrong. He was alching yew longs and accidentally alched all his phats (yes my examples can get even more stupid :D). Anyway, the point is that now 5 phats, which were actually 'in circulation' are now gone from the market. Thus there is an (indirect) effect on the price of the phat as there is an supply of 5 phats less on the market.I really dont understand why you wasted so much time explaining the concept of supply and demand... but anyway, let me explain what I said earlier. The market was affected when he bought the phats, and decided not to resell them, either because he didn't want to or accidentally alched them. Lets say the blue phat is 450m, and the guy buys a few, thats when the prices are affected, then the value goes up to 455m, because the demand rose, and some of the supply was taken away from whoever he bought the phats from. So thats it, the market has already been affected and the phats are officially his, and whatever he does with them is his problem. But not to fear, according to you hes going to sell the phats a few weeks later, so he will change the new price of 455 back down to 450. But sadly he alches it, so hes not able to do so, the price stays at the current 455. The end. Lastfm Link to comment Share on other sites More sharing options...
Duke_Freedom Posted January 18, 2007 Share Posted January 18, 2007 I really dont understand why you wasted so much time explaining the concept of supply and demand... Because you don't seem to understand it. The price is not decided by the people who buy / sell an item, but instead by the amount of people who are willing to buy / sell the item for a certain price. The price (equilibrium) of an item is that price where the amount of supply (sell) is equal to the amount of demand (buy). If one person who shows up on the supply side of the market suddenly alchs his hat, he no longer shows up on the supply side of the market anymore and thus effects the market equilbrium as I've shown clearly in the first example. The value of my bank at its height. Estimated value at the peak of the rares market: 250 billion+.Most likely the largest trade in RuneScape ever. Estimated value at the peak of the rares market: 70 billion+. Link to comment Share on other sites More sharing options...
Montezuma Posted January 18, 2007 Share Posted January 18, 2007 I think that the prices are out of control right now. I think jagex should just give people that have it the money that it is worth and then lock the items so they aren't tradable anymore. Oh and xevocm8velexx sig is fake... Just some random thing I noticed...lol Link to comment Share on other sites More sharing options...
malo2 Posted January 18, 2007 Share Posted January 18, 2007 I really dont understand why you wasted so much time explaining the concept of supply and demand... Because you don't seem to understand it. The price is not decided by the people who buy / sell an item, but instead by the amount of people who are willing to buy / sell the item for a certain price. The price (equilibrium) of an item is that price where the amount of supply (sell) is equal to the amount of demand (buy). If one person who shows up on the supply side of the market suddenly alchs his hat, he no longer shows up on the supply side of the market anymore and thus effects the market equilbrium as I've shown clearly in the first example.I understand the supply and demand concept very well, but you seem to not understand what im saying at all, and hiding it by giving a reply without an argument. If a person has a hat, they are not on the supply side until they go through the trade screen and give their phat to someone else. Comprende? go ahead and re-read my post a million times if you have to and then respond with an argument that actually replies to what I said. Lastfm Link to comment Share on other sites More sharing options...
Duke_Freedom Posted January 18, 2007 Share Posted January 18, 2007 If a person has a hat, they are not on the supply side until they go through the trade screen and give their phat to someone else. Comprende? And I am saying that you are denying the fundamentals of supply & demand theory by saying that. Supply is "the amount of an item that is for sale (on the market) at a certain price". Yes, supply is a function of the price. However, it nowhere requires any physical trade to take place for supply to 'exist'. Even though you say you "understand the supply and demand concept very well" I suggest you read some more about supply & demand on wiki. I don't think I'll reply to any further posts unless you actually read what I said and perhaps read a bit more about it on wiki as well. The value of my bank at its height. Estimated value at the peak of the rares market: 250 billion+.Most likely the largest trade in RuneScape ever. Estimated value at the peak of the rares market: 70 billion+. Link to comment Share on other sites More sharing options...
Kill_Thomas9 Posted January 18, 2007 Share Posted January 18, 2007 All of the rare items will go up in price between now and the end of 2007 by 5.46% - 13.39%, anywhere in there. :? uum, no? That would mean Phats (blue) would go up 23 mil to 60 mil. And easter eggs would go up 546k to 1.3 mil. And masks (red) would go up 2.7 mil to 5.7 mil not gunna happen. Maybe they will go up 50x that much. Green masks went up almost 1000% between january and september last year. Link to comment Share on other sites More sharing options...
Kill_Thomas9 Posted January 18, 2007 Share Posted January 18, 2007 [how the heck] did that do a double post? Oh well, might as well make this one useful: now that i read the second page, I got to read Duke's nice long (or not quite so long compared to some of his posts ) I think I know what an equalibrium is now! Anyway back to the subject of rares: im not doing the math - just a guess but im betting the p -hats go up bout 400k a day so by the end of the week they went up bout 2mil - end of the year since theres 52 weeks in a year 104mill a year oops i did the math-- dangit I would guess the hats rise (on average) 800k a day. That would be 5.6mil a week, or 292k a year. If you are counting the price over one year as the peak of the year, I would say they rose 1mil a day. (more realisticly 950k a day) Link to comment Share on other sites More sharing options...
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