If the global price of tin exceeds the target (ceiling) price set by an international commodity agreement, what actions would the buffer stock manager and member countries take to bring the price closer to the target? Specifically, what would the buffer stock manager do with tin, and how would member countries adjust their tin exports under an export quota agreement?
Explanation
When the world price of tin is higher than the agreed ceiling price, the buffer stock manager intervenes by selling tin to increase supply and lower the price. Simultaneously, member countries are encouraged to increase their exports under the export quota agreement to further raise supply and push the price down toward the target.