According to the theoretical frameworks of Fankel (1986) and Lai, Hu and Wang (1996), we set up a closed economy model including two sectors of agricultural and manufactured products. When there is a disturbance in the agricultural market and the government fries to stabilize agricultural prices above the minimum price that was set by the government, we analyze the dynamic process of agricultural prices, manufactured prices and purchase amount of the government for agricultural products. We find that when the initial threshold of agricultural prices is higher than the new equilibrium level, the price regime of agricultural products will collapse instantaneously from being flexible to being regulated because of the increase in supply of agricultural products caused by disturbance of agricultural market. Meanwhile, the government will raise purchase amount for agricultural products to keep agricultural prices equal to the threshold level. But if the initial threshold of agricultural prices is lower than the new equilibrium level, agricultural prices will continuously decrease and be more unstable comparing to the situation that government did nothing about agricultural prices.