Rotten Apples: The Inflation in Neopia

by wangkok

Inflated prices for Green Apples have baffled many NeoPet owners. The public wants to know what is so special about a boring fruit. It is time to learn a lesson about "Robber Barons" and corruption in the marketplace. Soon everything will become clear.

There is no apparent reason for a green apple to cost upwards of 5000 NP. Apples are good for feeding your pet and helping out at the Under Sea Kitchen - and that's about it. It would seem, unless a privileged few know something very special, that they are ordinary food items. So why the huge price tag?

Overpriced apples are all part of a much larger picture - Robber Barons.

Rich shop owners (a.k.a. Robber Barons) are to blame for the absurdly high prices of green apples. A shop owner will set up a "stakeout" by using the market wizard to search for cheap apples. Cheap apples are often sold by people who are new to NeoPets. A smart shop owner will buy "underpriced" items and place them in his or her shop for 5000 NP. On some days 5000 NP will be the cheapest price in Neopia, so it is not long before some sucker buys that apple at the super-inflated price.

What has the shop owner just done? Subtract a reasonable price for a piece of food from 5000 NP and you'll see why the Robber Baron pulled this stunt. He or she has made thousands of NP in pure profit while also helping to inflate the prices of green apples. So what? It's just an apple!

This happens all of the time with loads of products. It is a simple science of supply, demand, and monopoly. Every day many people sell their codestones for the listed price - 500. Then shop owners buy all of these inexpensive 500 NP stones and resell them for over 1500 NP. Say it with me now: Pure profit.

Where else can we see this? Faeries, Neggs, food, and many other necessary objects.

But wait - there is a flip side to this story. At an official store books will go for dozens of NP, but they are sold with amazing discounts. This is due a horrendous surplus of books. Once you have used a book you can simply sell it and still retain the knowledge. Notice that all of the overpriced objects (apples, food, faeries, stones) are consumable!

In the past, Robber Barons have been stopped if there is a surplus of an item. We saw this happen every time that a rare item was given out at Advent in December and then sold at a hugely reduced price at the market. We also saw this after December 25th when holiday paint brushes were no longer desirable. However, unless NeoPets.com makes some very drastic reforms, it is up to the community to work to fix the economy.

Every time you sell a product on the market for a low price a Robber Baron is going to get richer. Work within your guild communities and with your friends to establish trades at fair prices. You might not profit by selling a codestone for 500 NP, but maybe that friend will return the favour and sell you a Faerie for 60 NP.

Remember that every time you make a just trade like this you are preventing the Robber Barons from getting richer, so you are also slowly bringing down inflation. If everybody helps we can effectively increase the power of the Neopoint, making everybody richer and creating a strong economy. Trade with a friend and bring inflation to an end!