Answer:
The answer is: A price floor is above equilibrium price and causes surpluses.
Explanation:
Following the supply curve, the higher the price, the larger the quantity supplied.
So when a price floor is set above the equilibrium price, the quantity supplied will increase, surpassing the quantity demanded. That will cause a surplus of quantity supplied.
For example, if the government sets the minimum wage to $50 an hour, there will be more people willing to work than vacant positions available.
