The scenario
A smartphone launch boosts demand, shifting the demand curve rightward. The block diagram models the market as a feedback system where excess demand drives price changes, adjusting demand and supply until a new equilibrium is reached.
What is in this drawing
Read the decisions behind it.
01
Represent market clearing as a sum junction computing excess demand
02
Use feedback of equilibrium price to both demand and supply blocks
03
Treat demand shift as an external input signal
Suitable for explaining economic equilibrium shifts using control theory concepts, such as in interdisciplinary systems analysis or economic modeling courses.
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