The Diagram Below Illustrates the International Tin Market

question 54

Multiple Choice

The diagram below illustrates the international tin market. Assume that producing and consuming countries establish an international commodity agreement under which the target price of tin is $5 per pound.

Figure 7.1. Defending the Target Price in Face of Changing Demand Conditions

?
-Consider Figure 7.1.Suppose the demand for tin decreases from D₀ to D₂.Under a system of export quotas, the tin producers could maintain the target price by

• A) increasing the quantity of tin supplied by 15 pounds.
• B) increasing the quantity of tin supplied by 30 pounds.
• C) decreasing the quantity of tin supplied by 15 pounds.
• D) decreasing the quantity of tin supplied by 30 pounds.

---

Definitions:

Questioning Skill

Questioning skill involves the ability to ask effective and meaningful questions that facilitate learning, understanding, or problem-solving.

Relevant Responses

Appropriate or suitable reactions or answers to questions or situations, which are directly connected to what is being asked or considered.

Active Listening

A communication technique that involves giving free and undivided attention to the speaker, reflecting back what is said, and withholding judgment and advice.

Somatic Sensations

Physical feelings or perceptions originating from the body, such as pain, temperature, or proprioception.