Ripple Effect
Many of the continual price changes are brought about by the constant influx of new players, and the constant growth in skill levels of older players. For example: only someone with level 99 smithing can make the extremely valuable rune plate body armor. A year after launch, there were few of these smiths, but now, there are many more, over double the first number. If all of these accounts are still playing and still making rune plate body armor, the number of people with it goes up, unused supply goes up, demand goes down, and prices follow.
However, two things tend to keep this deflation in relative check. First of all, there is a constant influx of new players who want this armor, keeping demand up and supply down, or at least even. Also, many high-level players are only out for money when making such rare items.
They rarely want to bother with spending the extra time to find a buyer (and often, the extra profit isn't enough to waste the time on), and will often use the "High Level Alchemy" spell to "sell" the item for 1.5 times the normal store price. This saves them the hassle and gives them the money they need. Supply goes down, demand stays level, and again the price remains relatively stable. The high alchemy spell increases the amount of money in the game.
The mechanisms that take money out of circulation are consumption (food, runes, arrows), are much smaller than the increase caused by high alchemy. This is in part due to the runecrafting, fishing, and cooking skills. A skilled player will quite often produce runes and food (with no monetary loss) for their own consumption without buying or selling these items to other players. The result is inflation, causing the price of some items to soar steadily over time.
Rewards
Experience in the 2 types of attack you don't use to defeat the dragon (Example: If attack is used, you get experience in strength and defence)
Ability to wear the rune/runite platemail armor
Ability to wear dragonhide armor (RuneScape 2 only)
Two quest points
Trivia
Before Jagex Software disabled the trading of certain quest-related items, players were able to complete the quest without the magic requirement.
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