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Question _ a) According to a Toyota press release on October 23, 2020, sales of the fuelefficient four-cylinder Honda Civic rose by 7.1% from 2019

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Question _ a) According to a Toyota press release on October 23, 2020, sales of the fuelefficient four-cylinder Honda Civic rose by 7.1% from 2019 to 2020. Over the same period, according to data from the Pakistan Energy Information Administration, the average price ofregular gasoline rose from Rsl22.27 per gallon to Rs 152.57 per gallon. Required answers: Using the midpoint method, calculate the cross-price elasticity of demand between Honda Civics and regular gasoline. According to your estimate of the cross-price elasticity, are the two goods gross complements or gross substitutes? Does your answer make sense? b) Discuss Why most of rms apply average cost pricing rather marginal cost pricing criterion in practice

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