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Analyzing a Model of the Coffee Market
An economist creates a model to predict the price of coffee in a given year. The model includes the quantity of coffee consumers are willing to buy at various prices and the quantity producers are willing to sell at various prices. The model takes the average annual rainfall in major coffee-growing regions as a given input. Explain why 'average annual rainfall' is treated as an external, pre-determined factor in this specific model.
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Analyzing a Model of the Coffee Market