What happens when the government sets the floor price above equilibrium?

When the government sets a floor price above the equilibrium price, it leads to a surplus in the market. This occurs because the higher price encourages producers to supply more goods, while consumers are less willing or able to purchase them at the elevated price. As a result, the excess supply can lead to wasted resources or unsold products, creating inefficiencies in the market. Examples include minimum wage laws and agricultural price supports, where the intended benefits can sometimes result in unintended negative consequences.