Harry Potter Series: A Microeconomics Perspective on Market Demand

This essay analyzes the demand for the Harry Potter book series through a microeconomic lens, focusing on factors such as consumer income, price, and the availability of substitutes. It highlights how the series maintained high demand due to its unique storytelling, strategic movie adaptations, and availability in multiple languages. The analysis also touches upon the production function, the book's presence in a monopolistic market, and the absence of price discrimination. The essay references the impact of related web series and video games on the demand and pricing of Harry Potter merchandise. Desklib offers similar solved assignments and past papers for students.

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Micro economics
Essay
6/12/2018
Student Name

1 | P a g e Micro economics
Every time when there was a new book of the Harry Potter series, is able to generate the
demand for them in the previous books because of their people who want to start up the
series. The demand for books of harry potter was always shopping the increasing trends in its
nature as every 8-year child will get into the Harry Potter. Not only the reputation the book
has gained but the book has also able to grab the large market. When the book “Harry Potter
and the Deathly Hallows”, the last book in the series was published and released in the
market. The book has gained the highest portion of the bookselling market (CNN Money,
2007)
In the year of 2007, the world wanted to know whether the harry potter will live or die when
publishing of last part of Harry Potter is there in the market. Online retailer Amzaon.com said
that it has sold 2.2 million copies of the book worldwide. The income of the consumer also
support to the book purchase as the income of the consumer also affects the demand for the
book (CNN Money, 2007).
The demand for harry potter books was always there in the market due to the availability of
the book all the time in stores. Another reason to have the demand of this book in a market
was the low price of the book with interest in the harry potter and its team by each and every
second child. And there is an inverse relationship between the price of a product and the
quantity demanded. If the price is low demand will be high and vice versa (Moulin, 2014).
The production of the books can be increased by employing additional labour and capital.
The increase in the production will lead to the increase in the supply of the books. The supply
of the book sometimes also shows the decreasing trend when the customer finds substitutes
for this. But the J.K. Rowling used very different and innovative ideas in a story that attract
the customer most. To remain the demand for Harry Potter books in the market, he used
various other ways to sustain in the market which was making the movie on harry potter

2 | P a g e Micro economics
series one after another. The arrival of the movie in the market generates more interest among
the viewers (Callan and Thomas, 2013).
The relationship between the physical input and output is called as the production function.
These factors include land, labour and capital. In the short run, the company has to fix one
factor and factor variable to remain in the market. J.K. Rowling was able to produce the
books in the long run also as the book is available in 60 languages in the market which will
increase the sell. The targeted group includes every age group but especially the children.
This books matches with the taste and preferred by each and everyone in the market.
The book has the ability to earn the high amount of profits from the market due to the
introduction of the related web series and video games in the market which will increase the
price of other goods of Harry Potter. As there was an indirect impact on the prices and
quantity demanded in the market (Connor, 2013).
The book was dealing in the market of monopolistic nature which was a combination of
monopoly and perfect competition. In this type of market, close substitutes of the product
were available. There was no price discrimination in the market as close substitutes of this
type of book were not available in the market. No seller can charge different prices from
different customers (Moulin, 2014).

3 | P a g e Micro economics
References
Callan, S.J. and Thomas, J.M. (2013) Environmental economics and management: Theory,
policy, and applications. Boston: Cengage Learning.
CNN Money. (2007) Harry Potter dollar magic will live on [online] Available from:
http://money.cnn.com/2007/07/20/news/companies/harrypotter_newbook/ [Accesssed on:
12the June 2018]
Moulin, H. (2014) Cooperative microeconomics: a game-theoretic introduction. New Jersey:
Princeton University Press.
O'Connor, A. (2013) A conceptual framework for entrepreneurship education policy:
Meeting government and economic purposes. Journal of Business Venturing, 28(4), pp.546-
563.