Two Reasons We Can Be Assured That a Normal Distribution

question 19

Multiple Choice

Two reasons we can be assured that a normal distribution is a reasonable assumption for many variables are:

• A)the Centrality Theorem and Thompson's Limited Tails Theorem
• B)the Inequality Theorem and the Reasonably Normal Theorem
• C)Tchebychev's Inequality Theorem and the Central Limit Theorem
• D)none of the above

Analyze the effects of price floors and price ceilings on market outcomes.

Calculate shortages and surpluses in the market given government interventions such as price floors and price ceilings.

Determine the equilibrium price and quantity in a market from given demand and supply equations or schedules.

Assess the impact of changes in market conditions on equilibrium price and quantity.

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Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition, deceptive acts, and regulate antitrust practices.

Robinson-Patman Act

A United States federal law that prohibits anti-competitive practices by producers, specifically price discrimination.

Standard Markup Pricing

A pricing method that involves adding a fixed percentage to the cost of goods to determine their selling price.

Bait and Switch

A deceptive marketing practice wherein a company advertises a product at a low price to attract customers, only to persuade them to purchase a more expensive item when they arrive.