Economic Misconception

[Nia12]

Yeah i'm the same i didnt understand it at all but you must of thought you were right to of written so much so don't feel bad about trying to gt your point across

*Nia12*

[shiver]

Visa darling, you did actually lose on one quite major point. You concede that changes in popularity/number of Club Sofas will make other furni values rise - this in effect makes the Club Sofa worth less than previously. Whilst it remains the constant trading currency, even now you need more Club Sofas to "buy" a decent room of rares than previously.

A Club Sofa will always cost 1HC (obviously), but if other items cost much more (as happened quite recently, a lot of furniture increased in price rapidly (has now fallen again)) then one Club Sofa will not be such a worry. It's just like inflation in the real world, if you need more of a currency to get something, that currency is actually worth less than before, no matter what the face value of it says.

I agree with you however about the "too many" idea, and how there can never be too many of them. If they stopped being released, their value would actually increase (that is, the values of other rares would drop), which would drastically change the entire trading economy. However, it's not likely to happen, so we stay with the constant: 1 HC = 1 HC

Take inflation into mind next time you try arguing economics. Your college course has failed you.

ye i agree

Thread closed by Jordan (Forum Super Moderator): Please do not pointlessly bump old threads