Current Events > Why does supply and demand exist?

(+) Yeah! (+)

For essential items like oil and food, I understand why supply and demand is a thing, especially during the pandemic where prices are extremely high, because people need them and are willing to pay more for them.

But nonessential items that only have a price tag because of it being "RARE!!" is extremely stupid. Why does Flintstones Surprise at Dinosaur Peak for NES need to be $1,000? I don't care if there's only 900 copies of the game, there's no emergency reason to buy it, so the price should stay at $30, if even that. Rarity is nothing more than fake value.

It should be us regulated that only essential items can have price adjustments based on supply and demand. All other items that are not essential should absolutely be a fixed price.
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How do you determine that fixed price
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this is like

the exact opposite of making sense

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*supply and command

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Its $1000 because people are willing to pay $1000 for it.

If they werent, it would cost less.

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g980 posted...

How do you determine that fixed price

How much was it when the game was first released? Charge it that price.
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g980 posted...

How do you determine that fixed price

Maybe the price could be determined organically by people buying and selling the items.

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bigblu89 posted...

Its $1000 because people are willing to pay $1000 for it.

If they werent, it would cost less.

If I'm willing to pay $1000 for a box of cinnamon toast crunch from target, does that mean the box should be $1,000? That's why the government should be involved, forcing the non-essential items to be the price that they are, not significantly more just because somebody loves the product.
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It's $1000 probably due to auction scams
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Chunkey Simmons posted...

If I'm willing to pay $1000 for a box of cinnamon toast crunch from target, does that mean the box should be $1,000? That's why the government should be involved, forcing the non-essential items to be the price that they are, not significantly more just because somebody loves the product.

An item is worth what someone is willing to pay for it.

If youre willing to pay $1000, that doesnt mean the next guy will.

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bigblu89 posted...

Chunkey Simmons posted...

If I'm willing to pay $1000 for a box of cinnamon toast crunch from target, does that mean the box should be $1,000? That's why the government should be involved, forcing the non-essential items to be the price that they are, not significantly more just because somebody loves the product.

An item is worth what someone is willing to pay for it.

If youre willing to pay $1000, that doesnt mean the next guy will.

That's my point. Just because one joker wants to pay $1000 for Flintstones Surprise At Dinosaur Peak on NES it doesn't mean the price of the game should be that much. I'm sure there's plenty of people that would rather pay just $30.
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Because collectors want rare things they can look at and be like, I'm one of the few people who has this.

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Chunkey Simmons posted...

That's my point. Just because one joker wants to pay $1000 for Flintstones Surprise At Dinosaur Peak on NES it doesn't mean the price of the game should be that much. I'm sure there's plenty of people that would rather pay just $30.

But when the next guy lists it for $1000 and no one buys it, its not really worth $1000.

Plus, $1000 wasnt the original price. Once something becomes a collectible, its up to the market to set the price.

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Damn that Flintstone game is going for more than $1000. I guess to a game collector with money it's no big deal.

https://www.ebay.com/sch/i.html?_from=R40&_nkw=Flintstones+Surprise+At+Dinosaur+Peak&_sacat=0&rt=nc&LH_Sold=1&LH_Complete=1

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LeoRavus posted...

Because collectors want rare things they can look at and be like, I'm one of the few people who has this.

As a collector, let me ask you a question. would you rather pay less or more? I guarantee you if a rare game did not have exorbitant prices, collectors would be happier. You don't need rare video games to survive, so supply and demand shouldn't exist. It's giving the wrong group of people more money than they should have.
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Chunkey Simmons posted...

As a collector, let me ask you a question. would you rather pay less or more? I guarantee you if a rare game did not have exorbitant prices, collectors would be happier. You don't need rare video games to survive, so supply and demand shouldn't exist. It's giving the wrong group of people more money than they should have.

That's just the way things always worked. I'm a collector (not a game collector) and I don't get mad at people charging way more than an item's original price. I do the same thing when I sell. You'd be a fool not to especially since eBay will get 10% and paypal like 4%. Why lose money lol

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bigblu89 posted...

Chunkey Simmons posted...

That's my point. Just because one joker wants to pay $1000 for Flintstones Surprise At Dinosaur Peak on NES it doesn't mean the price of the game should be that much. I'm sure there's plenty of people that would rather pay just $30.

But when the next guy lists it for $1000 and no one buys it, its not really worth $1000.

Plus, $1000 wasnt the original price. Once something becomes a collectible, its up to the market to set the price.

Exactly, and look at the ridiculous prices that the market has come up with. That's why it should be up to the government, not the market.
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Supply and demand is literally a basic part of humanity.

Farmer needs tools so he offers some of his harvest to Blacksmith. Blacksmith offers a tool for 10 pounds of Farmer's harvest. But Blacksmith's brother, who also makes tools, offers a tool for only 5 pounds of Farmer's harvest.

Farmer takes Blacksmith's brother's deal, so Blacksmith offers Farmer a tool for 7.5 pounds of Farmer's harvest, and reminds Farmer that his tools are better quality than his brother's. So this time Farmer has a decision to make.

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We live in an Imperfect world. Lets fix that.

Chunkey Simmons posted...

Exactly, and look at the ridiculous prices that the market has come up with. That's why it should be up to the government, not the market.

The government should have no say in how much you can charge for your own stuff. No one is being forced to buy it.

Scalping on the other hand should probably be regulated or heavily taxed. Like people buying up 100 PS5s and making a fortune off people who can't get one. And those assholes who were selling hand sanitizer for $30 a bottle when covid hit. I remember going to the grocery store and an employee brought a case of it up front. People looked like they just won the lottery. The case was gone by the time I checked out.

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Think of it like this....

Theres no longer a demand for human flight. We have airplanes & rocket ships. Back in the day, there was a demand. For thousands of years.

In essence, humanity as a collective no longer has a demand for basic flight capabilities

why is there supply and demand?

cause there isnt an unlimited amount of free resources and free skilled labor.

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Other people have said it already, but the price is what it is because that's what people will pay for it. Why would you, as a seller, part with your product for a cheap price if you know somebody will pay 30x that price?

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Damn_Underscore posted...

Supply and demand is literally a basic part of humanity.

Farmer needs tools so he offers some of his harvest to Blacksmith. Blacksmith offers a tool for 10 pounds of Farmer's harvest. But Blacksmith's brother, who also makes tools, offers a tool for only 5 pounds of Farmer's harvest.

Farmer takes Blacksmith's brother's deal, so Blacksmith offers Farmer a tool for 7.5 pounds of Farmer's harvest, and reminds Farmer that his tools are better quality than his brother's. So this time Farmer has a decision to make.

In this case, the tools and harvest are essential items, so I 100% support supply and demand in this situation. You need those things in order to survive, especially if that is your full-time job.

If the farmer was offered a $1000 game from the blacksmith just because it's "rare" or a "collectable", that is an absolute rip off. Owning a rare game is not an essential item. Just because a bunch of people want that piece of plastic, doesn't mean this should be worth more.
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Chunkey Simmons posted...

Owning a rare game is not an essential item. Just because a bunch of people want that piece of plastic, doesn't mean this should be worth more.

That's exactly what it means.

Oh wait, hold on. This is 'expected successor' guy.

I'm done biting, lmao

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This is just how it works for all items.

The government probably wouldn't even care enough to set a price for the Flintstones game.

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Why does Flintstones Surprise at Dinosaur Peak for NES need to be $1,000?

Because it's a damn quality game, that's why.

Damn_Underscore posted...

This is just how it works for all items.

The government probably wouldn't even care enough to set a price for the Flintstones game.

For some items there is only demand. Zero supply. The system effectively doesnt exist for them. Example: Cureall for cancer

bigblu89 posted...

Its $1000 because people are willing to pay $1000 for it.

If they werent, it would cost less.

^this

People can't let go of nostalgia and are willing to pay whatever amount to get their hands on it. Sometimes certain games had a low production run too making it very hard to experience those games on it's native console, driving up the price of the game.

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Gobstoppers12 posted...

Other people have said it already, but the price is what it is because that's what people will pay for it. Why would you, as a seller, part with your product for a cheap price if you know somebody will pay 30x that price?

The sellers who are selling their products for more than they should be are the problem. Plenty of scalpers sell things for way too high of a price when they shouldn't, and they are the exact people the government should go after.

I think people are missing the part where I said that supply and demand works fine for essential items. Items that you need in order to survive in the world. But the idea of supply and demand shouldn't apply for non-essential items. I also think people believe the world and economy are going to fall apart if non-essential items are not priced by the market. Guess what, that's not going to happen, because no one needs those non-essential items to survive in the world.
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Is TC that averagejoel dude who said that beachfront property in Hawaii should be just as affordable as land in the boonies of the shittiest city of the shittiest state in the country lol

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eBay could regulate things but why would they. They get $150 if an item sells for $1500 and only $3 if it sells for $30. And the government gets a piece of that through taxes. Whatever I buy online has 6% sales tax tacked on. It wasn't like that in the past but it is what it is.

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g980 posted...

How do you determine that fixed price

God I hated that question so much in my econ classes
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Here's the thing--if the government tried to regulate rare game sales, such that this highly-sought NES game could only ever be sold for, say...$100...

Nobody would sell their collectible games. The price wouldn't be worth losing it.

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Even with my new knowledge about product, I keep saying there is a demand and a offer. The amount of customer that can go in the grocery each day is limited. And this is just an example, more other situation like this exist. But it's true that some supply are infinite.

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Chunkey Simmons posted...

If I'm willing to pay $1000 for a box of cinnamon toast crunch from target, does that mean the box should be $1,000? That's why the government should be involved, forcing the non-essential items to be the price that they are, not significantly more just because somebody loves the product.

LOL, he wants government involvement in the private sale of items. Great troll topic.

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I guess some people think of that Flintstones game as an investment. If people are willing to pay thousands for it now, who knows what they'd be willing to pay in the future. Could also just sit for years collecting dust. It's still a risk. High risk high reward.

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Flockaveli posted...

I guess some people think of that Flintstones game as an investment. If people are willing to pay thousands for it now, who knows what they'd be willing to pay in the future. Could also just sit for years collecting dust. It's still a risk. High risk high reward.

That's a gamble when it comes to collecting. Certain items that are hot now may have a small market in the future. Like people go through a phase where they're trying to relive a point in their childhood and start buying up toys and games then get bored with it later.

80s toys are super hot since 80s kids have money now and are getting older, having a mid life crisis, whatever. In 20 years their value may go down who knows.

I went through a phase where I started colleting things I grew up with. Now I'm like, let that life go. You can't relive it.

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Chunkey Simmons posted...

The sellers who are selling their products for more than they should be are the problem. Plenty of scalpers sell things for way too high of a price when they shouldn't, and they are the exact people the government should go after.

I think people are missing the part where I said that supply and demand works fine for essential items. Items that you need in order to survive in the world. But the idea of supply and demand shouldn't apply for non-essential items. I also think people believe the world and economy are going to fall apart if non-essential items are not priced by the market. Guess what, that's not going to happen, because no one needs those non-essential items to survive in the world.

So youd rather people scalp essential items, like food and gasoline, than collectibles, like old video games?

Thats ass backwards.


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Watching CE try and grasp even the most basic ideas of economics is always a trip

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FL81 posted...

Watching CE try and grasp even the most basic ideas of economics is always a trip

TC is the only one confused here though lmao

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AceAttorneyist posted...

TC is the only one confused here though lmao

shut the door!

bigblu89 posted...

Chunkey Simmons posted...

The sellers who are selling their products for more than they should be are the problem. Plenty of scalpers sell things for way too high of a price when they shouldn't, and they are the exact people the government should go after.

I think people are missing the part where I said that supply and demand works fine for essential items. Items that you need in order to survive in the world. But the idea of supply and demand shouldn't apply for non-essential items. I also think people believe the world and economy are going to fall apart if non-essential items are not priced by the market. Guess what, that's not going to happen, because no one needs those non-essential items to survive in the world.

So youd rather people scalp essential items, like food and gasoline, than collectibles, like old video games?

Thats ass backwards.

No why would I wish for that? Are people scalping those things right now? No. Why would they start doing it now?
AceAttorneyist posted...

FL81 posted...

Watching CE try and grasp even the most basic ideas of economics is always a trip

TC is the only one confused here though lmao

If there were a rare Captain falcon amiibo that were worth $1000, would you rather pay full price for it or just $50? I don't get why people are preferring the more expensive prices when they don't need to be that more expensive.
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FL81 posted...

Watching CE try and grasp even the most basic ideas of economics is always a trip

except it isn't the most basic idea of economics. The idea of scarcity is.

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Chunkey Simmons posted...

If there were a rare Captain falcon amiibo that were worth $1000, would you rather pay full price for it or just $50?

A better way of looking at this: If you owned a rare Captain Falcon amiibo worth $1,000 and were looking to sell it...would you rather sell it for $1,000 or sell it for $50?

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Chunkey Simmons posted...

If the farmer was offered a $1000 game from the blacksmith just because it's "rare" or a "collectable", that is an absolute rip off.

You've got that backwards.
The miller offered $1000. The farmer has to at least match that offer if he wants the game.

Or, the farmer can just chuckle and walk away, as it's not essential anyway and the miller is an idiot.

Shortage of resources
Underproduction
Low wages for production jobs
Overpopulation
General low wages leading to people trying to make extra cash by scalping everyday items
Things like the coronavirus leading to people buying everything in sight without consideration for others or whether they even need it

Then there are laws that sometimes create it. For example, marijuana is illegal in the south. If you want it, the dealer can charge $60+ for an either of an ounce, which would cost $15-35 in a legal state (depending on quality).

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Gobstoppers12 posted...

Chunkey Simmons posted...

If there were a rare Captain falcon amiibo that were worth $1000, would you rather pay full price for it or just $50?

A better way of looking at this: If you owned a rare Captain Falcon amiibo worth $1,000 and were looking to sell it...would you rather sell it for $1,000 or sell it for $50?

If I were the seller of course I'd rather make $1,000 off of it. But I would also understand why the US laws are in place (the ones I've come up with in this topic, I mean). If the government mandated the costs of rare items, and about 50 years no one would be butt hurt over how much they made off a rare item.
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Lol, it's not complicated. If there's only 600 copies of something and 6000 people that want to buy it you're gonna have to pay more than 9/10 people who want it are willing to pay for it.

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Also, a single-word answer to TCs question is scarcity

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