In a virtually economy like this one, that isn’t necessarily true. Because of the ease of entry, it’s not uncommon to see an item become more common, more players receive the item naturally and enter the market, creating more demand and increasing prices instead of decreasing prices.
It certainly is not easy to regulate a complex system such as an ingame economy and this is not an exclusive GW2 issue, it’s a general MMO issue. If not solved it can get out of hand even leading to a considerable amount of the server population to quit.
However, there are different ways for the designers to manipulate the situation to stabilize the virtual market. For example:
1) increasing the drop rate for an item (probably not your first choice :p)
2) making an item purchasable from a vendor, e.g.
— a) Laurels
— b) Gold
— — current Charged Lodestone price = 3,4 G --> have a lower vendor price
— — could also be used to eliminate gold from the economy
-- c) Karma Points
— — motivation to complete quests and events
-- — motivation to level alt characters even
-- d) Dungeon Tokens for both story and explorable
3) making it an obligatory / probable drop from Dragon Chests
— as of now, many players don’t have much motivation to bother with Dragons since the chests do not have a significantly high chance of dropping rare crafting materials. It could be a way of turning Dragon hunting into a more worthwile and popular event for the community.
-cat 
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