To prevent the market price of tin from rising above the target price, the manager of a buffer stock will purchase excess supplies of tin from the market.

Question

Quizplus · Accepted Answer

To prevent the market price of tin from rising above the target price, the manager of a buffer stock would release tin into the market, not purchase excess supplies. Purchasing excess supplies would be done to support or raise the price, not to prevent it from rising.

To Prevent the Market Price of Tin from Rising Above