Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?
Correct answer: C. buy 4 million pounds of tin
- A. sell 4 million pounds of tin
- B. sell 8 million pounds of tin
- C. buy 4 million pounds of tin
- D. buy 8 million pounds of tin
Explanation
A 4-million-pound fall in demand would create excess supply and push the price below its target. Buying 4 million pounds removes that surplus and supports the target price.
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