Fundamental method of economical mathematics

6. (15 marks) Suppose we want to analyze the effect of the price of used cars on the market of new cars. The demand for new cars is given by Qn = D" (Pn; Pu) ODn ODn OPn 0 where On is the quantity of new cars and Pn (Pu) the price of a new (used) car. The supply function of new cars is Qn = S(Pn) S'(Pn) > 0 (a) (3 marks) Identify the endogenous and exogenous variables (b) Is the market for new cars and used cars interrelated? How do you know