Question: Models: Apply the supply-and-demand model to the following markets. In each case, state the key endogenous variables in the market as well as some important exogenous variables or parameters. Also, express each model as a system of mathematical equations. As an example, Q = F(P, X‾) might be the demand curve in the computer market, where X‾ captures some exogenous variables like the availability of the iPod or computer games. How many equations are there within each example? How many unknowns?
(a) The computer market.
(b) The market for your favorite music.
(c) The market for a particular currency, such as the dollar, the yen, or the euro.
variables": what is exogenous in one model, as in a narrow study of the supply and demand for dollars, may be endogenous in a richer model - like a study of the entire U.S. macroeconomy.)