What is "Supply and Demand"?

In game design, "Supply and Demand" is a fundamental economic principle applied to the distribution and availability of in-game resources, items, or features. This concept borrows from real-world economic dynamics, wherein the balance between the availability (supply) and desirability (demand) of goods or services influences their in-game value and impact on gameplay.

Supply refers to the quantity of a particular resource or item available within the game world. This encompasses everything from virtual currency and equipment to consumables and rare in-game assets. Game designers carefully manage the supply of these elements to control their scarcity or abundance, directly influencing their perceived value and impact on player decisions.

Demand, on the other hand, represents the players' desire or need for specific in-game resources or items. This is influenced by factors such as the utility of an item, its rarity, and its effectiveness within the game's mechanics. The higher the demand for a particular resource or item, the more players are willing to invest time, effort, or in-game currency to acquire it.

A well-designed game balances supply and demand to create a dynamic and engaging economy. For instance, if a powerful weapon is too readily available (high supply), it may diminish its perceived value and impact on gameplay. Conversely, if a resource is excessively scarce with high demand, it might lead to frustration among players, creating an imbalance.