JK Rowling has created stories and worlds that are much loved around the world. Most children know the Harry Potter stories, but what they may not realize is that they learn about economics through these stories. Harry Potter and the Philosopher's Stone contains some intriguing lessons in economics that JK Rowling may not have even intended to include. In case anyone needs a refresher on the first book in the series, it's about a boy who, as a baby, defeated the world's most powerful and feared wizard after this wizard killed his parents. No one knows how Harry Potter defeated Voldemort, they just do. Some wizards close to the Potters gave Harry to his muggle aunt and uncle (aka non-magical humans) who only like ordinary things and hated the Potters because they were strange and different. Once Harry grows up, he is accepted into Hogwarts School of Witchcraft and Wizardry and discovers that he is a wizard. He also learns that his parents left him money and that he will live at the school. His muggle family was horrible to him. At school, he learns about monsters, witches, spells and potions, meets Voldemort and learns that Professor Quirrell works for him and fights this professor in order to save Hogwarts (Rowling). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay So, what does Harry Potter have to do with the economy? This is actually deeply related to the concepts covered in Chapter 3 of Macroeconomics Today, about supply and demand, the weight of demand and the different types of markets (Schiller). Harry Potter demonstrates factor markets, which deal with the factors of production, product markets: where items are sold, opportunity costs: how when one item is purchased, another item cannot be purchased, supply: the ability and willingness to produce an item, demand: the willingness. and the ability to obtain an item, as well as the determinants of demand. First, there is the example of opportunity cost. Schiller defines opportunity cost as “the most desired goods or services that are given up to obtain something else.” In The Sorcerer's Stone, there are two comparative examples of opportunity cost in the story. Harry Potter lives with his aunt and uncle Dursley and their son Dudley. In their house, Dudley is highly preferred over Harry. Harry sleeps in a cupboard under the stairs while Dudley has two bedrooms, one for his toys and one for where he sleeps. The Dursleys buy Dudley what he wants. For Dudley's birthday, they go out and buy him more gifts because Dudley is upset that the number of his gifts are less than last year. Dudley doesn't understand opportunity cost because his parents buy him everything he wants. For this reason, he places little value on the objects he receives. Harry Potter observes Dudley's toy room. Almost everything here was broken. The month-old video camera sat atop a small working tank that Dudley had once rolled over the next door neighbor's dog; in the corner was Dudley's very first television, which he had stepped into when his favorite show had been cancelled. Dudley's lack of understanding that there was an opportunity cost to his toys would ultimately harm him. He doesn't understand that his parents' resources are limited and that soon he will only have broken toys to play with. Harry Potter understands opportunity costs, however. He knows that if he doesn't behave as he would likethe Dursleys, he will be punished and lose the few privileges he has. When Dudley celebrates his birthday, Harry is supposed to go to a babysitter. The babysitter can't take Harry that day and the Dursleys are forced to take Harry with them to the zoo. Before leaving, his aunt and uncle threaten him that if anything goes wrong at the zoo, Harry will not be allowed to leave his closet. Harry, of course, accidentally makes the glass at an exhibition. He disappears and the Dursleys lock him in his cupboard for weeks. Harry understands that if he does something wrong, intentionally or not, he loses the few privileges he has. Harry Potter all the determinants to demand after receiving his inheritance. Once he has wizarding money to use, he meets the conditions. Whereas until now, Harry didn't have this ability. Harry is shown to have the deciding taste when he wishes to purchase a cauldron of gold. He is prevented from purchasing this item and gets a pewter one, but he also demonstrates taste by purchasing a nicer scale and a nicer telescope. Which implies that he chose these elements over another. Once Harry receives his inheritance, he fills in the income determinant with his gold coins. He shows through his desire for a golden cauldron and his choice to buy tin that the determinant of other goods is fulfilled. The determinant of expectations is fulfilled. Harry believes he will have very little and will only be able to buy what he needs. Harry's expectations change once he realizes he has a lot of money. He hopes to be able to purchase better versions of the items on his supply list. His expectations are disappointed by his caretaker with certain objects, but with others his expectations are met. There are also a number of buyers. We see Harry interacting with another boy wizard in a store who is also making a purchase. Harry also observes that the stores are very busy, proving that Harry is not the only person with demand and that some options will not be available because the items have already been purchased (Schiller 51). Eventually, Harry Potter receives a letter accepting him into Hogwarts and he is able to use the application and locate a deal. Schiller says, “a market exists wherever and whenever an exchange takes place.” He also defines demand as “the ability and willingness to purchase specific quantities of a good at alternative prices over a given period of time, all else being equal” (Schiller 48). This market exists for him in the wizarding world where his parents left him an important inheritance. This gives Harry demand in the wizarding market. Especially in Diagon Alley where Hogwarts students go to buy their school supplies. Harry now has the ability to make more purchasing decisions than he ever had before. The story goes that at one point Harry has the opportunity to buy a golden cauldron, his guardian stops him from buying it because it is not the cauldron listed on the supply list. Harry however gets a better scale and a better telescope since he couldn't buy the cauldron he wanted (Rowling 80). Because of the market that Harry was able to trade in and the fact that he had demand, this shows that the supply is also there. Harry only encounters a produce market. Schiller defines product market as “any place where finished goods and services (products) are bought and sold”. Harry enters a clothing store, an apothecary, a pet store, and a wand shop. All of these places involve a supply and demand of wizards willing and able to make purchases. The story also speaks of complementary goods and substitute goods, some being.