An increase in the price of hot dogs from $1.60 to $2.00 per pound increased the average number of hamburgers demanded per capita per week from 1 to 1.4. assuming that all other economic variables were held constant, the arc cross-price elasticity of demand between hot dogs and hamburgers is

a. –1.5, which indicates that the two goods are substitutes.
b. 1.5, which indicates that the two goods are complements.
c. 1.5, which indicates that the two goods are substitutes.
d. –1.5, which indicates that the two goods are complements.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine