Personal Touch Produces and Markets Beaded Purses

question 30

Multiple Choice

Personal Touch produces and markets beaded purses.When graphed,the demand schedule for its purses is a straight line.If one purse costs $20,5,000 beaded purses are sold.At $25,4,500 purses are sold.How many beaded purses will be sold if the price per purse is increased to $30?

• A) 5,500
• B) 4,250
• C) 4,000
• D) 3,750
• E) 3,500

---

Definitions:

Cartels

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Non-Unionized Industries

Sectors of the economy where labor unions do not represent the workforce, often resulting in different labor standards and wages.

Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers may legally pay to workers.

Structural Unemployment

Unemployment caused by changes in the industrial makeup of an economy or technological innovations that render certain job skills obsolete.