A number of Latin American countries export coffee and import other goods. A longterm drought now reduces
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A number of Latin American countries export coffee and import other goods. A longterm drought now reduces coffee production in the countries of this region. Assume that they remain exporters of coffee. Explain why the long-term drought in the region might lead to an increase in the region’s well-being or welfare. What would make this gain in well-being more likely?
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The drought itself reduces production in these Latin American countries and tends to lower their wel...View the full answer
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