Using the Apple's iPad product, put it your own setting and interpret it.

Use demand theory to create an overall market demand curve by aggregating the demand curves for two types of individual consumers. There are three steps to this analysis. Required items are noted in bold. a. Assume that there are two types of consumers. Briefly describe two consumer types, and for each, specify: (5 points total) i. Assume a linear demand curve for an individual consumer of this type (by linear, I mean having the form q" = A - BP with some specific numbers A > 0 and B > 0). . Ungraded suggestion: Coming up with reasonable assumptions for the slope and intercept terms in your linear demand functions does not have to be hard. See the final slide called "Optional material for Question #5: How to "calibrate" (that is, come up with some reasonable numerical assumptions for) linear demand curves". ii. Assume the quantity of consumers of the two types in the market: N, and N2, respectively. b. Derive the market demand curve based on the individual demand curves and number of consumers. (6 points) (Hint: You should use the equation qtotal = N, * q1 + N2 * 92. Just make sure you have the demand curves arranged such that q is a function of P before you use this formula.) c. Create a graph of the market demand curve. (6 points) . Label this graph Figure 5 and include a descriptive Title in the label. (E.g., "The market for children's apparel consists of price-sensitive parents and less price-sensitive gift-givers") . Ungraded suggestion: Use this question as an opportunity to think about the different types of buyers for the product you are studying. They probably have different income levels, substitution possibilities, and tastes. Consider how these differences would cause differences in the shapes of their demand curves