Michelle works in an appliance store. She has a goal to sell a combination of six refrigerators, stoves or dishwashers so she ca
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<u>Answer and Explanation:</u>
Caramel Corporation outstanding share are 5000
Caramel Corporation distributes $145,000 in an exchange for 1000 number of shares in a qualifying stock redemption.
Given : caramel Corportaion has E&P of around $300,000.
E&P attributable to 1000 number of shares =
Therefore, the consequence of this redemption are $60,000 charge to E&P and reduction in caramel Corporation paid-in capital account is $85000 ($145000 subtract $60000)
Explanation:
It is given that in the market there are four equal-sized firms that produce similar products. The market is saturated such that 10% industry-wide price rise would lead to 18% decline in units sold by all firms in the industry. Going further, there is a proposed legislation that imposes a tariff on a key input used by the industry, which on realization would result in the increase in marginal cost by $2.
This means that the market elasticity of demand is:
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