In a perfectly competitive market, if a price floor is set above the equilibrium price, it will likely lead to a surplus of goods because the quantity supplied will be _____ the quantity demanded.

In a perfectly competitive market, a price floor is a minimum price set above the equilibrium price, which is where supply and demand balance. When the price floor is higher than the equilibrium price, producers are encouraged to supply more goods because they can sell them at this higher price. However, consumers will not buy as much at this higher price, leading to a situation where the quantity supplied exceeds the quantity demanded. For example, if the equilibrium price of apples is $1 per pound but a price floor of $1. 50 is set, farmers will want to produce more apples, but consumers might only want to buy fewer apples at that higher price.