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Seems like I can't understand even the basics of supply and demand?
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Anya Ohaya
School of Applied Knowledge
Caldari State
#21 - 2012-08-22 11:05:02 UTC
Akita T wrote:
I feel like nitpicking here a bit.
You're always going to get the intersection.
Unless the curves themselves change either position or shape, that point never changes.
So, no, you never "move up or down a supply or demand curve", you shift the supply or demand curve in some direction, or you change the shape of the supply or demand curve, so that the intersection point changes.


Well if you really want to nitpick, there are two prices (due to the tax margin) and there is a small discrepancy between the quantity that would be supplied at the price the buyer pays, and the quantity that would be demanded at the price the supplier actually receives (after taxes).

Without those taxes the quantity supplied would be slightly higher, the quantity demanded also slightly higher and the price slightly lower (somewhere in between the price the buyer pays, and the after tax price that the supplier receives). In technical terms there is a deadweight loss in economic benefits obtained by everyone in the market. In EVE this deadweight loss due to taxes will be very small. In the real world it can be very very large.
Akita T
Caldari Navy Volunteer Task Force
#22 - 2012-08-22 12:53:06 UTC  |  Edited by: Akita T
Good point.

Hey, if you prefer, call it Heisenberg's uncertainty principle applied to EVE markets (just kidding) :) :)
"You can know where the volume is, but you can't be sure about the price, or you can know what the price is, but you can't be sure about the volume".
:D

Akita T evewiki profile | | | Build your own EVE-ready PC
Din Chao
#23 - 2012-08-23 18:27:31 UTC  |  Edited by: Din Chao
Akita T wrote:
Heisenberg's uncertainty principle applied to EVE markets (just kidding) :) :)

I am the one who docks!! (sorry ;P)
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