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economics · supply-demand · feedback

Supply Shock Market Equilibrium

Tipo Diagrama de blocosNorma Ogata / standard controls textbook conventionMecanismo schematex-blockdiagramAtualizado 24/07/2026
Supply Shock Market Equilibrium
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O cenário

An external supply shock (e.g., natural disaster) shifts the supply curve, creating excess demand; the price adjusts to restore equilibrium, but at a higher price and lower quantity.

O que há neste desenho

Entenda as decisões por trás dele.

01

Represented supply shock as an additive disturbance to the supply block

02

Modeled market clearing using a sum junction computing excess demand (demand minus supply with shock)

03

Treated price adjustment as a feedback controller that responds to excess demand

Useful for analyzing the dynamic effects of any exogenous shift in supply or demand on equilibrium price and quantity, including policy interventions or supply chain disruptions.

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