Does the price control mechanism (price floor and price sealing) to a resource shortage provide an example of a positive or a negative feedback loop? Why?

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter8: Understanding Markets And Industry Changes
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QUESTION 1
Does the price control mechanism (price floor and price sealing) to a resource shortage provide an example of a positive or a negative feedback loop? Why?
Transcribed Image Text:QUESTION 1 Does the price control mechanism (price floor and price sealing) to a resource shortage provide an example of a positive or a negative feedback loop? Why?
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