How does the implementation of a price floor by the government typically affect producer surplus and lead to market distortion?

A price floor is a minimum price set by the government for a good or service, which means that producers cannot sell below this price. When a price floor is implemented, it usually leads to an increase in producer surplus because producers can sell their goods at a higher price than they would in a free market. However, this can cause market distortion, as it may lead to excess supply; producers might make more of a product because they can sell it for more, but consumers may not want to buy as much at the higher price. For example, if the government sets a price floor on milk, farmers might produce more milk than consumers are willing to buy, resulting in wasted resources and unsold milk. This imbalance can create problems in the market, as it disrupts the natural supply and demand relationship.