How Joyce got an A+
Source D. Ohmans
Date 01/11/16/15:53

Extra credit:

I decided to compare the market of the Harry Potter
book series and the miscellaneous merchandise
associated with the series.
I forsee that the revenue will probably drop as in
all book series, but the revenues will go up and down
as new readers come of age to enjoy and understand the
First off the supply of the amount of books
published to the demand is a direct relationship. Of
course the price to the quantity is an inverse
Now that the movie is coming out, the demand has
shifted forward with the price staying constant on the
1st book published, which the movie is based on. Since
the 1st book came out it has been on the NY Times best
seller list for 152 weeks, staying in the top 10,
sliding down when when another book from the series is
released, but has now moved up into the 2nd slot
The supply has also shifted forward with the price
staying constant. There has been no simultaneuos shift
because the price has remained constant with every
book released.
The marginal ulitity continues to go up with every
new book in the series read, however the marginal
utility does go down as a person re-reads the same
book due to knowing the outcome.
I believe the price of elasticity could almost be
considered inelastic for some, because as each book is
read the anticipation for the next book in the series
is very high and those die hard fans would pay almost
any cost in order to read the next book. Take for
instance, the forth book had stipulations on the
release date, there could be no early release, people
stood in line at mid-night on July 15, in order to be
the first one to read the new book. Over 250,000
copies were presold.
The demand is also inelastic, because there is no
other series that takes the place, and the series is
limited to only 4 books released out of the seven in
the series.
The profits on this series has been phenomenal. So
far 21 million copies of the series have been sold
since the 1st one was released in 1998. The 1st book
was bought for $500,00 by Scholastic books, and has
already made $1 billion in revenue.
They are even picking up some of the consumer suplus
by offering paperback books at lower prices, some
have gold edged pages that sell at a higher price, and
some with the authors signature sell for even higher
prices.I believe it is the 1st printed editions of
each book with the authors signature sells for
This book series is a monopoly with in itself,
because ther are no close substitutes. However the
prices of the books along with the merchandise are
comparable in price with other similar products, but I
believe they could increase the price of many of the
items and would still make a fairly large profit.
With the movie coming out, the quantity of seats
available is completely inelastic, it is held
constant. In order to assure a seat for the opening
day to the public many people had to go on line, pay
an additional handling fee of $2.00, so the extra
revenue from this can fall into economic rent.
Therefore the supply will continue to increase as
the demand increases until the last book in the series
is released, it should then start to flaten out, with
an occasional increase now and then for reasons stated
in the beginning.

Joyce Gallegos Saturdays

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