When government imposes a price floor above the market price, the result will be that

Managerial Economics

When government imposes a price floor above the market price, the result will be that

surpluses occur.
shortages become a problem.
supply and demand will shift up to the new equilibrium.
a price floor set above the equilibrium price will have no effect on the market equilibrium.

When government imposes a price floor above the market price, the result will be that surpluses occur.

Tags: Demand and Supply