Bounty Hunter Archive
Thread: BHs w/ Jetpacks: Take Note
Eleutherios wrote:
The supply will probably outgrow demand. For example, asteroid resources are not a hot commodity right now. Not many people are mining them. However, when more people realize the usefulness that they will soon attain, mining these resources will increase.
Shaan'ti Hokai (Kauri) 
McRibs wrote:
Eleutherios wrote:
With this in place, demand for the repair kits will increase, thus decreasing their price. They're fairly useless up until this pub (why would you buy one when you can repair it for free at a garage?), so once they start getting more popular, the price will go down.
You should check your theroy of economics chief.
lol
You do understand that you can't just drop a harvester on an asteroid, walk away and come back tomorrow for the resources
Imagine how much EVERYTHING would cost if artisans could only hand-sample for all their materials.
Demand does not change supply. The only factor that will influence supply is Opportunity Cost - that being, what's that much time worth to the seller? And can more money be made doing something else with that time? Sorry to inform you, but the answer is Yes. Anyone who can mine asteroids could just as easily be doing space missions and making a couple hundred K in the time it takes to mine enough materials for one repair kit (750 each of two materials takes an experienced miner about 30-45 minutes). I could fly to the Kimogila spawn in Endor sector and shoot fish in a barrel for 45 minutes and come home with 200k in loot and credit chips... so the value of that time will never be lower than that, and thus the value of the materials is likewise set.
You're also ignoring the fact that asteroid resources are already required by Shipwrights to make many things - among which are the components used to mine asteroids! It's not hard to find a shipwright willing to pay 60-80 cpu for asteroid resources, so that sets a base price for the finished goods (90-120k plus profit).
“I think you really just don't have much of a concept about what these materials are already used for or what obtaining them entails. You can say "nobody can know" but I'll trust proven principles of economics over your wishful thinking, if it's all the same to you”
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Opportunity cost – is what you give up (the other alternative), by taking any one course of action. So for example if you buy a CD its not the money that is the opportunity cost but the other items or services you could of bought with the money… Although slightly related doesn’t effectively explain price increases or to what degree a price will increase. It does to a certain point explain supply elasticity. For example you have to give up an incredible lot of time, effort and possibly cash to mine, as well as being able to sell the raw material to a shipwrights. Summary is that the price will increase at a higher rate per quantity supplied than would do if the resources are easy to get.
“I think you really just don't have much of a concept about what these materials are already used for or what obtaining them entails. You can say "nobody can know" but I'll trust proven principles of economics over your wishful thinking, if it's all the same to you”
AH must be a new student of economics in his first year of study? (not a flame but I remember the days myself hehe so just an asumption) … You are dead right, prediction of the economy and its prices is the very study and a vitalpoint behind the THEORY OF ECONOMICS. While nobody can know the exact increase in price, it can be calculated with demand and supply curves to a certain margin of error. But you will need a more than basic knowledge of economics/mathematics to be able to do this and is not an exact science.
I would theorise however that if such repair kits are difficult to create, the price will increase quite a lot for such items and I would be buying my stocks NOW!!!!!
Badda bing badda boom, economics 101
PS I’m not always right and if I’m wrong feel free to contradict me hehe. As you can tell I love this subject lol
Message Edited by Laney_1uk on 08-24-2005 04:15 AM
Eleutherios wrote:
With this in place, demand for the repair kits will increase, thus decreasing their price. They're fairly useless up until this pub (why would you buy one when you can repair it for free at a garage?), so once they start getting more popular, the price will go down.
If they dont change the resource requirements for those, they will still be pretty expensive. They take only asteroid resources, and a lot of them on top of that. If you can bring me 500k units asteriod resources (will have to look up the types needed) I can make a run of 1000 repair kits - but last time I checked, space mining resources were through the roof price-wise.
Drukku wrote:
Actually your theorymake a random assumption about the supply changing. Priceschange based on thecorrellation between demand and supply. You are assuming the supply will outgrow the demand if you say that the prices will go down. However, if demand goes up and supply stays the same, the prices will go up. If both supply and demand go up equally, then the prices will remain the same. Since crafters will want to maximize profit, logic would dictate that they make sure that their supply does not outgrow demand, in which case the prices will either remain the same or increase. The only way for prices to go down is for the crafters to flood the market with the products on their own accord, which while making buyers happy, would be a foolish move.
Message Edited by Drukku on 08-23-2005 09:27 PM
Knock off the I wanna be logical BS and gain some COMMONSENSE. These kits will be required thus a MAJOR INCREASE in demand will aris, therefore the price will plummet. Simply economics dude. Not rocket science.
Eh? - if i made the kits and demand went up, i would sell them for more because people will need the kits and so the kits will be more likely to sell at a higher price. If demand goes up, so does the price, not the other way around - for example, jetpacks have a high demand and their prices are through the roof, the same will happen with the repair kits as these will be single use items, as opposed to continued use items such as jetpacks. I sold the mining resources for one repair kit at 75cpu. I believe that the price will go down when they fix the mining ship bug as people will be able to mine a lot more resources in their time. You don't pay for the actual item, you pay for the time someone spent collecting resources for and crafting the item in. My tip is to buy as many kits as you can now to sell when the price goes up - you will be creating demand on your own and so that will help the prices go up - people are greedy and they will charge whatever they can for items.
Dejin24 wrote:
Drukku wrote:
Actually your theorymake a random assumption about the supply changing. Priceschange based on thecorrellation between demand and supply. You are assuming the supply will outgrow the demand if you say that the prices will go down. However, if demand goes up and supply stays the same, the prices will go up. If both supply and demand go up equally, then the prices will remain the same. Since crafters will want to maximize profit, logic would dictate that they make sure that their supply does not outgrow demand, in which case the prices will either remain the same or increase. The only way for prices to go down is for the crafters to flood the market with the products on their own accord, which while making buyers happy, would be a foolish move.
Message Edited by Drukku on 08-23-2005 09:27 PM
Knock off the I wanna be logical BS and gain some COMMONSENSE. These kits will be required thus a MAJOR INCREASE in demand will aris, therefore the price will plummet. Simply economics dude. Not rocket science.
Knock off the I wanna be logical BS and gain some COMMONSENSE. These kits will be required thus a MAJOR INCREASE in demand will aris, therefore the price will plummet. Simply economics dude. Not rocket science.
Logical BS maybe but you don't seem to understand it (not a flame). HOW do you theorise that if demand INCREASES, price will plummit. Demand increase = Price rise. Price will only plummit if suppliers choose and can actually supply at a given price. If they can indeed supply large quantities at an above production cost they will do and then price will fall. There are a whole bunch of reasons why prices will fall but this is just one of them
IN TIME..... IF.... BIIIIGGGG if the mining of 'roids becomes more popular prices will decrease... MAYBE.
Simply because you have increase the amount of suppliers you effectively increase the potential supply. This shifts the supply curve vertically downward, setting a new equilibrium at a lower price. Should demand not sustain such quantity supplied, suppliers drop out of market and price returns to starting point.
A decrease in prices also assumes that the people selling the ore do so at a low enough price.... But initially you know that will not happen...
No you are dead right. Takes time to transmit the market price to others (what advertising is for). An increase in ore and everyone will want to shift it at the highest price. But as soon as consumers shop around and find better deals they will stop using other suppliers or ore and go to cheaper ones. If one undercuts you have your price war and it will continue to decline to one goes out of business or the price hits the overall costing level of mining it. OR IF SOMEBODY STARTS A CARTEL. No I’m not telling you what one is if you don’t know lol
What bugs me is that you can get a flash speeder fixed at a garage for 20K WITHOUT a kit???!!! Why is the flash special?
This on TC I presume ?
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Please read my first post it explains it all farely neatly.