Tuesday, 16 July 2019
A Report: The effect of events on supply and demands
As updates of the the migration was released today, the mighty Eomon Matriarch is the closest to Ashi as it going to get for this year before moving south, with the Eomon herd following behind, and as the migration goes on, I want to take a closer look at an example of how mass hunting in events has on the market value.
Currently in the migration Longtooth are easily the most accessible when it comes to hunting, the lower levels can be hunted by many of the new and old players alike, with the lowest level being the Longtooth adolescent at level 4.
Animal Kidney Oil is one of the items that can be acquired frequently from the Longtooth. It does not need refining unlike hides, wools and skins and it more commonly used in crafting in its raw form.
At the start of the migration season we can easily see that the markup price falls drastically. The main reason for this drop is supply and demand, but there is a little more to this than meets the eye.
In the migration season many people will hunt Longtooth, and many people will acquire Animal Kidney Oil, and with many having Animal Kidney Oil, a number of them will try to sell their items quick on the auction offering lower prices than the people before them.
This happens when there is an oversupply of any resource, more supply means more people have that resources to sell, which means more competitors when selling.
As a hunters and a miner, understanding this will allow you to maximise the return you get from selling your loot, As a crafter understanding this will allow you to minimise the cost of the resources you need when buying.
Many traders will use this chance to use their PED to buy into to low value resources, which tends to cause other markets to raise in markup, the demands from crafters will still be there, but with less of a supply, market prices tend to raise. An items with hardly any sales, does not necessarily mean there are hardly any buyers, it could just as equally be a hard to acquire item, and if so, the markup would be greater.