Thank you for the ideas.
Let me try to simplify the problem in very crude terms for the sake of better explaining the concept.
When using four quadrant multiplier in Proteus as "normal" AM modulator the resultant signal amplitude is twice the added amplitudes of higher frequency and lower frequency signals.
The resulting signal also swings into both positive and negative values.
However, what I want to achieve is the resulting signal with the amplitude of the higher frequency signal following the amplitude of the lower frequency signal.
The modulation is achieved by continuously changing the resulting wave amplitude by using the lower frequency sine signal.
The resulting signal swings alternately into only positive or negative values.
Now, it seems that the Proteus model easily allows for such modification and I don't see any obvious reason why it couldn't be realised in hardware.
That said, currently it is for me simpler to use AWG to output the desired signal into the output amplifier and try it out in practice to see if it's even worth getting into the hardware design.
My attempts from previous posts are based primarily on trying to emulate the behaviour of the Proteus four quadrant multiplier model.
Achieving the normal AM modulation in Simulink makes it obvious that it is suitable for such task.
However, I have preciously little experience with math programs and simulators and why I need some help with it.
I hope that I managed to explain what I have to achieve in Simulink.