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The market for coffee (drink) in the country of Kopimana is perfectly competitive. Kopimana is a small exporter of coffee beans, where the crop is

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The market for coffee (drink) in the country of Kopimana is perfectly competitive. Kopimana is a small exporter of coffee beans, where the crop is grown by many small farm-holdings. Suppose that bad weather conditions destroyed a significant proportion of the coffee bean crop in Kopimana which reduced the income of the coffee bean farmers. To assist these farmers, the government of Kopimana decided to give them an export subsidy such that the quantity of coffee beans exported by Kopimana would remain constant (unchanged). Based on the scenario described, answer the following questions: a) Since the quantity of coffee beans exported is unchanged, would the coffee bean producers be better-off, worse-off, or as well-off as before? Explain your analysis and illustrate using demand and supply curves. (7 marks) (Hint: you may include a welfare table to support your analysis). b) Is there any deadweight loss in the market for coffee beans? Explain your answer and illustrate using your diagram in part (a). (3 marks) (Hint: you may refer to a welfare table to support your analysis). c) How would this affect the total revenue of coffee (drink) sellers? Explain your analysis and illustrate with an appropriate diagram/s

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