Equilibrium Price (Free vs Reg)
$120 vs $185
+54.2% regulatory price increase
Annual Market Units Output
450k vs 280k
-37.8% output reduction
Annual Deadweight Loss
$20.3M
Lost economic welfare per year
10-Yr Net Social Welfare
$1.82B vs $0.94B
Free market yields +93.6% surplus
Supply-Demand Curve Shift & Deadweight Loss
Free Market Supply (S₁)
Regulated Supply (S₂)
Deadweight Loss (DWL)
10-Year Cumulative Production & Net Social Welfare Trajectory
Free Market Cumulative
Regulated Cumulative
Simulation Completed State Summary
Baseline parameters loaded. Free market price equilibrium occurs at $120.00 producing 450,000 units, whereas central regulatory friction elevates equilibrium price to $185.00 while restricting output to 280,000 units.