Haste Pots and Supply and Demand AH Economics 101

I snagged the Haste Potion from the Ah today Haste Potion

I Spent 500 B/o on it. I’ve been waiting for it to hit the AH and had been prepared to spend round 350 Gold on it, but there was nothing on the Ah for a while, and the actual pots themselves haven’t appeared much on the Ah and when they did they were stupidly expensive.. and today I found out why…

So I send the receipe to my Alt to use, ( she is level 54 now and 375 Alchemy) and then I check out the prices of the ingredients…. and without going into specifics making 40 of them Hurt. So then I asked myself as i selected Buy Out.. Why? Why have the prices on so many things gone up, recently and prices for others gone down.
Eg – Greater planar Essences are now just under 5 Gold each on my server.
Stacks of Arcane Dust are going for around 20g Why. Both of them are the results of the majority of all those extra greens that are dropping. Great for enchanters if you need the mats, but Im finding that I’m only Deing only half of them and its better off financally to Vendor the rest.

So back to Economics 101
Supply and Demand.
Oversupply Prices Drop – Overdemand Prices Rise.- supposedly AHAH.. unless theres a hugh case of price fixing going on.. and people just trying to make the most money they can.. Mystic spellthread 150g RIP off… specially when the primals are only 12-13ish each

Some things to consider – These extra dailys are giving people a relative Easy up to 250 Gold aday plus greens – cloth – Mana motes, fire motes, Aldor and Scryer Rep item drops ect ect ..
but that takes time, and your looking at over an hour to do all 25 – so of that hour Play time what would have people of been doing otherwise? I would have been farming Mana Primals.. ( not anymore they are only worth around 12g each now.. )
So these people who would be adding things to the AH that they ‘farmed’ arent doing it as frequently by at least an hours worth of time, and for casual players an hour is a huge chunk of play time .
So in my opinion the result of the new dailys is – People have more money to spend , and there are less of certain Items on the AH.
This impacts on the base items neede to make something, Eg the Price of shadowcloth has now risen to 100 odd gold for 2 Why? The mats for Shadowcloth have risen in price.
Fire Primals are 35-37 Gold, Shadow primals are Similar.
I missed a cooldown day because the Cost of buying the Primals outweighed making the Cloth and it was a raid night and didnt have time to Farm, I would have been selling at a loss. So then next day I then Farmed what I needed rather then Buying at least one of the primals, and Sold the cloth at the average of the day price. ( price fixing ——–> me.. )

Is this a Virtual Take on world economics?
The cost of goods become too much so people either do without or farm themselves? Or is that me just being Frugal in a competitive environment.

People also then start hoarding the Mats when they farm them, I’ll farm a little extra so I don’t need to worry about it next time..

I know a few players who have been on wow longer then I have with Stacks of Primals- for a “Just in case they need them” and guilds hoarding items as well for long term plans PLUS suddenly you have all these people with extra money from the dailys who are willing to Pay or a forced to pay the higher prices….

and add onto the fact that there has been new badge gear added, and attunements lifted on some of the high end instances so more people now have access to new loot, that needs enchanting and jeming.. ect ect ect ect…

but whats the answer… easier money – or higher drop rates?

3 Responses to “Haste Pots and Supply and Demand AH Economics 101”

  1. 1 Meltfacer May 6, 2008 at 6:45 pm

    IMO its just easier money. If people have time to farm, they aren’t, they are doing dailies… and rightly so, why would I farm 10-15 min for a Primal when I could do 3-4 of the new dailies in that time and buy 2 Primals đŸ™‚

  2. 2 NaturalChaos May 6, 2008 at 9:12 pm

    It’s essentially the same thing that happens in the real world. Supply and demand rules everything in economics. Sometimes the supply is artificially cut short so as to drive up the price, just look at the diamond business. They want everyone to think they’re rare so they can drive up the price but the truth is, they’re actually fairly common, you just have to know where to look. It’s basically exactly what you said, when the cost of goods becomes too much, people either do without or do it themselves.

  3. 3 Meltfacer May 6, 2008 at 9:22 pm

    While i agree with pretty much everything said here, there is another factor to consider when talking supply and demand in WoW and comparing that to real world economics.

    The avaiablility of in game currency varies much more than real world currency. If the price on something goes way up in game I can simply do more dailies for a week and buy it. Where in the real world if there is something I cannot afford I don’t have that many options (true some people could work overtime, but this is not an option in many jobs).

    I guess what i’m trying to get at (@Naturalchaos).. “when the cost of goods becomes too much, people either do without or do it themselves” … there is a third option, people just do the dailies and pay the price:)

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