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Basic Economics

Discussion in 'Unofficial Guides' started by iiwars, Apr 24, 2014.

  1. iiwars

    iiwars Celebrity Meeper

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    So I'm going to give you the basics for the market side of economics. Then I will connect it to MeepCraft economy.

    So for your economy to work out you need it to flow around like a fountain, going in one way and coming right back out. This is called liquidity, it is known as "the asset's ability to sell quickly without having to reduce its price very much". If this is not happening you are having illiquid market, which is bad as it can be abused when the prices are higher than average, but can be bad for the economy if it goes down to low.

    Now lets connect this to MeepCraft economy. We had some Liquidity when there was V-shop because there was no infinite pool of items. Now that there is MeepShop, it has turned into an illiquid market. Where something can change so greatly if you buy in bulk. There also is not really a huge outflow as there is an inflow of Meebles. So the economy can grow so massive that there can be nothing done unless we are taxed.

    Now lets talk about supply and demand. For there to ever be a demand, there needs to be supply. Demand is determined by income, population, taste/preference, and substitution/compliments. Supply is determined by how much is in stock. Supply is the most malleable thing in the economy. As people invest into stocks there can be a fall in stock market. Then the business can go bankrupt or be worth absolutely nothing.

    To connect this with MeepCraft economy we're going to look at taste/preference and income. There are many things that people are making money off of that have no one to buy them(rotten flesh, string, spider eyes, etc.). So we are having way to much supply for this to even make any profit off of them. They should actually be worth 0 Meebles around now by the supply there is. The MeepShop was meant to be able to invest in and make some money off of it. So far, I haven't been able to do that once.

    If you have anything else I should add to this, post it.

    ~iiWars​
     
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  2. SirCallow

    SirCallow Legendary Meeper

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    Yeah new meepshop is lame.
    BRING BACK THE VSHOP FUZZLR!!!!!
     
  3. RuSiaN_PeDoBeaRAppeal

    RuSiaN_PeDoBeaRAppeal Meeper

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    Dude I buy rotten flesh all the time
     
  4. iiwars

    iiwars Celebrity Meeper

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    Can't item bomb anymore. </3 Only way to do it, is buy full inventory and /suicide. x'D
     
  5. RuSiaN_PeDoBeaRAppeal

    RuSiaN_PeDoBeaRAppeal Meeper

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    No m8 that's cheap food
     
  6. metr0n0me

    metr0n0me Legendary Meeper

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    I used to buy it too when I was poor hehe
    --- Double Post Merged, Apr 24, 2014, Original Post Date: Apr 24, 2014 ---
    Also, yeah... I really think the new V-shop just blew up supply and demand. Because in order to have a supply of something, you gotta have a demand. Now there's just infinite supply of everything. Like before...on the old V-shop, there was competition between people, which drove the prices down. Now there's only one price, which is...tada! what Fuzzlr thinks is right. Also, the new Meepshop just blew up the entrepreneurs who built chest shops. The tradeoff, usually selling stuff to the shop owner for a bit less than V-shop, sellers could get instant cash for their goods, and shop owners could get cheap items. There. It all worked. Now, though, the Meep-shop is the only way of getting items, because there is now not that healthy compromise, since the shop is instant. There. Another merchant/middle class wiped out of existence. Furthermore, the 5% tax on selling, I think, is just pointless. If people can make money on selling, so be it. I remember on the old Vshop, I once found diamonds for 20 each. If people want to be dumb, let it be! With this new eco, it reflects the USA less, and I think, the USSR more, because the government (Fuzzlr) controls price/wages, and monopolizes trade, with only limited individual businesses (enchanted book/potion shops).

    Rant over...
    --- Double Post Merged, Apr 24, 2014 ---
    Holy crap it changes F.u.z.z.l.r to fuzzlr
     
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