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Figure 7.4 Global Markerfor Thi 4.02 Price (Dollars) 3.50 20 40 60 80 100 Tin ( Thousands of Pounds) Consider the global market for tin

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Figure 7.4 Global Markerfor Thi 4.02 Price (Dollars) 3.50 20 40 60 80 100 Tin ( Thousands of Pounds) Consider the global market for tin represented by Figure 7.4. Initially equilibrium is at point A with a market price of $3.50 per pound and 50,000 pounds. In order to keep tin price relatively stable an International Tin Agreement has set a price floor of $3.27 and a ceiling of $4.02. As the demand for tin increases to D1 how will the buffer-stock manager need to respond? Select one: O a. buy 10,000 pounds of tin O b. buy 20,000 pounds of tin O c sell 10,000 pounds of tin O d. sell 20,000 pounds of tin

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