Lo scenario
Governments impose price floors to prevent prices from falling below a certain level, causing excess supply and market imbalance.
Cosa contiene questo disegno
Leggi le decisioni che ne stanno alla base.
01
Model the market as a feedback loop with price adjustment.
02
Include a price floor block that limits price from below.
03
Output excess demand to show market imbalance.
Use when illustrating dynamic effects of price controls in economics.