How does the imposition of a price floor affect economic surplus in a market, particularly in relation to deadweight loss?

A price floor is a minimum price set by the government, which means that sellers cannot sell a product for less than this price. When a price floor is imposed, it can lead to a surplus because the higher price may encourage producers to supply more of the product, but it can also reduce the quantity that consumers are willing to buy. This creates a situation where there are unsold goods, leading to what we call deadweight loss, which is the loss of economic efficiency when the quantity traded is less than what would occur in a free market. For example, if the government sets a price floor on bread that is higher than the market price, bakers may produce more bread, but fewer people will buy it, leaving some bread unsold. This not only wastes resources but also means that the overall economic surplus is reduced, as both producers and consumers are worse off.