Government programs that compensate farmers for not planting crops on all their land : hurt farmers by lowering their total revenue and hurt consumers by causing shortages of some food items. farmers by cutting costs, which consumers by lowering food prices. farmers by increasing total revenue in the market but hurt consumers by raising food prices. farmers directly since they receive government payments but have no real effects on consumers.

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?