Supply and Demand Active Learning Assignment
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1. Demand and Supply in the Housing Market (20%)
Suppose the demand function for squared meters of housing in Oslo is a standard downward sloping curve, while the supply function is a standard upward sloping curve.
2. Behavior of consumers in the market for water (15 %)
(a) The residents of Norway consume water (W ) and spend the rest of their income on other goods (O). The price of water is PW , while the price of other goods is PO. The i...
3. Production of taxi rides (15%)
GlobalTaxi runs taxi services around the globe. GlobalTaxi uses two inputs in production: capital K and labor L. Capital has a rental cost of r, while labor is paid a wage w.
(a) Derive th...
4. Pricing in the electricity market (25 %)
Let households’ demand for electricity be given by q = 100 − 5p. The price of electricity at power exchanges is 2, so the marginal cost of power suppliers is 2.
5. COVID-19 measures in the labor market (25 %)
The COVID-19 pandemic has had large effects on the economy. There have been particularly large effects on industries that rely on the physical presence of their customers, such as a...
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