3924EconomicsMedium
Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries ________ their export of tin?
Apurchase; increase
Bsell; increase
Csell; decrease
Dpurchase; decrease
Correct answer
B. sell; increase
Explanation
The correct answer is sell; increase.