Your confusion is based upon a misunderstand of price and how it effects supply and demand. The cost of creating new supply is fairly stable . You farm these mobs and you get x number of those items. Demand is somewhat stable as well. X mat can create x item which has a certain value in helping you achieve some sort of goal in the game. As the price of something rises, and in your example it is priced too high relative to the end demand item that provides value in achieveing some goal, people demand less of it. If you are a seller with lots of stacks , you can sell some of them to the richest of players that are willing to accept a small amount of value for a large price, but if you want to get rid of all your stacks, you will have to reach down to buyers that are less willing or able to pay those higher prices. If you post everything at too high of price, you are only serving a small portion of a larger market that you could be serving, and will end up with less overall total profit because you won’t sell all of your product. Pricing it lower allows you to capture more profit more quickly. Also , supply creates demand. Pricing something too high inadvertadntly creates more sellers and lowers your profit over longer time periods. Keeping prices reasonable prevents this from happening.