If a government imposes a price floor on a product, what is the most likely immediate effect on the market for that product?

When a government sets a price floor on a product, it means they establish a minimum price that sellers can charge. This is often done to ensure that producers can earn enough money to cover their costs. The immediate effect of this is that the price of the product will rise above the equilibrium price, where supply and demand meet. For example, if the government sets a price floor on milk at $3 per gallon, but the market price is usually $2, it can lead to excess supply because farmers will produce more milk, thinking they can sell it at the higher price, while consumers might buy less due to the increased cost. As a result, there may be a surplus of milk in the market, where supply exceeds demand.