Supply, Demand, Shortage and Surplus

For any limited good/item, there is a limited supply available, and a certain amount demanded by consumers (e.g. players).
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This diagram represents a dynamic economy model focused on the trading and ownership of "Legendary Swords" within a marketplace or gaming environment. It illustrates the fundamentals of supply and demand, alongside player interaction through the selling and purchasing of these sought-after items. The system uses various nodes to simulate an economy where "Legendary Swords" can be looted (introduced into the system), put on sale, or requested by players (demand generated).

In essence, the diagram models how "Legendary Swords" flow through the market, from being looted or generated as new demand, through to being owned by players or being available for sale. Pools track the supply, demand, and ownership status of swords, while converters handle the transactions (purchases) based on the players' requests. The introduction of randomness and probabilities in transaction flows and loot generation introduces variability, mimicking real-world market fluctuations. A particularly noteworthy aspect is the decision-making mechanism that governs whether players will sell their swords, driven by the current market situation (supply vs. demand). This decision is further influenced by modifiers that simulate market dynamics, such as increasing willingness to sell based on demand, symbolizing a profit-seeking behavior in response to market shortages or surpluses. The model encapsulates a simplified but comprehensive portrayal of how goods are valued, traded, and how their perceived value changes in response to market conditions.