When a price floor is set above equilibrium, what is the expected impact on deadweight loss in the market?

When a price floor is set above the equilibrium price, it means that the minimum price allowed for a good or service is higher than what buyers and sellers would normally agree on. This usually leads to a surplus because more producers are willing to sell at the higher price, but fewer consumers are willing to buy. As a result, there are transactions that could have happened at the equilibrium price that do not occur, creating a loss in economic efficiency known as deadweight loss. For example, if a government sets a minimum price for milk that is above the market price, some milk producers may produce more milk than consumers want to buy, leading to wasted resources and unfulfilled potential transactions. This deadweight loss represents the benefits that both consumers and producers miss out on due to the price floor.