Question: The only gas station in a small town sells both regular and premium gasoline. The weekly demand functions for the two gasolines are Qdregular =

The only gas station in a small town sells both regular and premium gasoline. The weekly demand functions for the two gasolines are
Qdregular = 10,000 - 1000 Pregular + 50Ppremium
Qdregular = 350 + 50 Pregular - 100Ppremium
Where quantities are measured in gallons and prices in dollars per gallon are these products substitutes or complements? If the price of regular gas is $2.70 per gallon, its marginal cost is $2.95, and the marginal cost of premium is $3.05, what is the profit-maximizing price of premium gas?

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