Suppose global economic growth leads to an increase in the demand for tin by 4 million pounds at every price level. To keep the price of tin stable at the target price, what action should you take?

Explanation

When demand rises by 4 million pounds at all prices, maintaining the target price requires offsetting this increase in demand by selling an equivalent amount of tin. Therefore, selling 4 million pounds of tin balances the market and keeps the price steady.