Each merchant buys only some kinds of items, and that's different for different merchants. For the rest he will behave like a regular person, that is they just take whatever you give them--and it doesn't help anyone. I think the "peddlers" buy almost anything, but they pay poor prices.
The guys walking on the street labelled "merchants" aren't really merchants, in the sense that they won't buy or sell anything. They're just ordinary people like nobles etc.
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Life starts every day anew. Prospects not so good...
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