JK Rowling has created stories and worlds that are much loved around the world. Most children are familiar with the Harry Potter stories, however what they may not realize is that they are learning about economics through these stories. Harry Potter and the Philosopher's Stone offers some intriguing lessons when it comes to economics that JK Rowling perhaps didn't even intend to include. In case anyone needs a refresher on the first book in the series, it's about a boy who as a child defeated the most powerful and feared wizard in the world after that wizard killed his parents. No one knows how Harry Potter defeated Voldemort, they only know that he did. Some wizards who were close to the Potters gave Harry to his muggle (i.e. non-magical human) uncles who only like ordinary things and hate the Potters because they are strange and different. Once he grows up, Harry is accepted into Hogwarts school of magic and discovers that he is a wizard. He also learns that his parents left him some money and that he will be able to live at school. His muggle family was horrible to him. At school he learns about monsters, witches, spells and potions, meets Voldemort and discovers that Professor Quirrell is working for him and fights that professor to save Hogwarts (Rowling). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay So how does Harry Potter relate to economics? It actually connects deeply to the concepts discussed in chapter 3 of Today's Macroeconomics, about supply and demand and the weight that a demand has and the different types of markets (Schiller). Harry Potter demonstrates factor markets, which deal with factors of production, product markets: where items are sold, opportunity costs: how when one item is purchased another item cannot be purchased, supply: the capacity and the will to produce an item, demand: the will and ability to obtain a good and 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 Philosopher's Stone there are two comparative examples of opportunity costs in history. Harry Potter lives with his uncle Dursley and his son Dudley. In their house Dudley is much favored over Harry. Harry sleeps in a cupboard under the stairs while Dudley has two bedrooms, one for his toys and one where he sleeps. The Dursleys buy Dudley what he wants. For Dudley's birthday they go out and buy him more presents because Dudley is upset that the number of his presents is less than last year. Dudley doesn't understand the opportunity cost, because his parents buy him everything he wants. For this reason he attributes little value to the objects he receives. Harry Potter looks at Dudley's toy room, almost everything in here was broken. The month-old video camera sat on top of a small working tank that Dudley had once driven over his neighbor's dog; in the corner was Dudley's first ever television, which he had set foot on when his favorite show had been cancelled. Dudley's lack of understanding that there is an opportunity cost to his toys will ultimately hurt him. He doesn't understand that his parents' resources are limited and soon he will only have broken toys to play with. Harry Potter, however, understands opportunity costs. He knows that if he doesn't behave as the Dursleys would like, he will be punished and will lose the few privileges he has. When Dudley celebrates his birthday, Harry is supposed to go stay with a babysitter. The babysitter can'ttake 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 won't be able to leave his cupboard. Harry, of course, accidentally makes the glass in an exhibit disappear and the Dursleys lock it in his cupboard for weeks. Harry understands that if he does something bad, on purpose or not, he loses the few privileges he has. Harry Potter has all the determining factors for the question after receiving his inheritance. Once he has the wizard's money to use, he meets the requirements. While up until that point Harry didn't have that ability. It is shown that Harry has the determining taste when he wants to purchase a golden cauldron. He is prevented from purchasing that item and instead gets a pewter one, but he also shows gusto in purchasing a nicer scale and a nicer telescope. Which implies that he chose those objects instead of another. Once Harry receives his inheritance, he meets the income determinant with his gold coins. Through his desire for a golden cauldron and his choice in purchasing pewter he demonstrates that the determinant of other goods is satisfied. The determinant of expectations is satisfied. Harry believes he will have very little and will only be able to buy what he needs. Harry's expectations change when he realizes he has a large amount of money. He expects to be able to purchase nicer versions of the items on his supply list. His expectations are disappointed by his keeper with some items, but with others his expectations are met. There are also numerous buyers. We see Harry interact with another wizard in a shop who is also making a purchase. Harry also notes that the stores are very busy, showing that Harry is not the only person with demand and will have some options unavailable because the items have already been purchased (Schiller 51). Harry Potter eventually receives a letter accepting him to Hogwarts and succeeds in doing so. use demand and identify a market. Schiller states that “a market exists wherever and whenever an exchange takes place”. He further defines demand as “the ability and willingness to purchase specific quantities of a good at alternative prices in a given period of time, ceteris paribus (Schiller 48)”. This market for him exists in the wizarding world where his parents left him a great legacy. This gives Harry a demand in the wizarding market. Especially in Diagon Alley where Hogwarts students go to buy school supplies. Harry now has the ability to make more purchasing decisions than he was ever allowed to before. In the story there is a point where Harry has the opportunity to purchase a golden cauldron, his keeper stops him from purchasing it because it is not the cauldron listed in the supply list. Harry, however, gets a nicer scale and telescope since he couldn't buy the cauldron he wanted (Rowling 80). Because of the market that Harry was able to trade from and the fact that it had demand, it shows that there is also supply. Harry only encounters one product market. Schiller defines a product market as “any place where finished goods and services (products) are bought and sold.” Harry enters a clothing store, a pharmacy, a pet shop, and a wand shop. All of these places involve supply and demand for wizards willing and able to make purchases. The story also talks about complementary and substitute goods, some of which are purchased within the same store. Schiller defines both terms: “substitute good: goods that replace each other; when the price of good x increases, the demand for good y increases, ceteris paribus”. and “complementary goods:.