I think this is a good time to post what I’ve said over the years.
Supply and demand does not work when resources are infinite. Supply and demand is a model that works when resources are limited. When resources are low, demand creates an increase in price. When supply is plentiful, prices go down.
But that is not the case when resources are not finite and the economy is player controlled. And here’s why:
As long as mobs are spawning, bosses are spawning, loot is dropping, then the supply is not finite. They’re not limited. Thus prices should never go up. The reason prices are high is because people are trying to bank on mats that are used on a hyped piece of armor or weapon. It’s not that mats are limited, nor are there a low amount, just look at the amount of mats in the TP. At no point. NO POINT can every single mat of a given type be bought out to create a high price for high demand. There are plenty of mats. This is nothing more than player greed, NOT SUPPLY AND DEMAND. Even if every mat of a specific type was bought out and the TP drained, there wouldn’t be a crisis for long as there are players still killing, getting loot and listing mats on the TP.
Another reason why prices are so high is that Anet dun goofed when it comes to the amount of mats you need. I power leveled tailoring on my necro and actually bought the mats needed to make my ascended gear for roughly 150-200 gold per piece of gear. How hard is it to make that kind of gold? It’s stupidly easy, not hard at all. But if you look at the differences between Tailoring, Leatherworking and Armor Smithing, you need a ludicrous amount more of leather or ore than you do cloth. That’s Anet’s mistake, by not balancing what you need.
The next reason why mats are high goes back to this stupid idea of supply and demand in an environment where supplies are always within reach. If players would stop undercutting and list for more, the economy would do quite well and people would actually make money, from selling mats to farming them. Here’s why:
If prices were listed for even a copper more rather than a copper less, those that vested in the TP would make money. Prices would go up, yes. But they would reach a point where players would not pay for those mats and go farm for them, causing prices to drop and reach a point where prices were acceptable and people would go back to buying mats on the TP. Another things that would help the economy is to stop the rush for ascended gear. Ascended gear and legendaries are supposed to be culmination of months, perhaps a year or more’s worth of work. But since Anet tested raids in Ascended gear, it’s supposed to be the only way you can raid, despite raids being completed in exos.
We didn’t need a new leather farm, we just needed drop rates and patterns adjusted in the existing world. That excuse about not enough time and resources is a joke. It takes less time to change a number rather than make a new map, put in the new mobs, make the damage stupidly overpowered and then create a back way in, just in case you can’t make the gauntlet run.
Nothing is infinite.
You’re forgetting a very important thing. People are resources too. There’s always a limited supply of players at any given time, they are not infinite. People have to eat, work, take a break, etc. Players are limited resources. Resources themselves are also limited since they depend on how many players are generating them. So supply and demand still works here.
Still, I agree with you. The reason hard leather prices are so high is simply because the supply is low. There’s no reliable way to get hardened leather in this game. All in all, the new leather farm raises the supply of all the other leathers EXCEPT for the one we needed! (Hardened)