How much is the iPhone 3g with and without contract?

Question

My friends are so excited that it's $200, but on EBay- they are selling for $800 OR MORE!! What gives?

http://cell-phones.shop.ebay.com/items/?_nkw=iphone+3g&_in_kw=3&_ex_kw=&_sacat=15032&_udlo=&_udhi=&_sabdlo=&_sabdhi=&_samilow=&_samihi=&_ftrt=901&_ftrv=1&_sadis=200&_fpos=&LH_SALE_CURRENCY=0

Answer 1

They might be the unlocked (hacked) versions.  Also, people are idiots.  They'll pay more on eBay than they get some things at the store.  Weird, I know.

Answer 2

With contract $199, without $400, the reason they are going for more is the demand right now is high and people are paying more, instead of waiting to they can get them at regular retail as more product becomes available on the market/