Arrange the following steps that illustrate the impact of a price floor on a market experiencing externalities: A) The government sets a price floor above the equilibrium price, B) Producers respond to the price floor by increasing production, C) The quantity supplied exceeds the socially efficient quantity, D) A deadweight loss occurs due to the surplus in the market.

A price floor is when the government sets a minimum price that must be paid for a good or service, usually above the market equilibrium price. When the government sets this price floor, producers see the opportunity for higher profits and respond by increasing their production. This increase in production often results in a quantity supplied that is greater than what is considered socially efficient, meaning that the extra goods produced do not have enough demand. As a result, a surplus occurs in the market, leading to a deadweight loss because resources are not being used efficiently. For example, if the government sets a price floor for milk, dairy farmers might produce more milk than consumers want to buy, causing waste and inefficiency in the market.