Price floor : Surplus :: Subsidy : ?

A price floor is a minimum price set by the government, which can lead to a surplus when the price is higher than what people are willing to pay. For example, if the government sets a price floor for milk that is too high, farmers may produce more milk than consumers want to buy, resulting in excess milk. Similarly, a subsidy is financial support given to producers to encourage them to produce more of a good, which can lead to a shortage if the market price is kept artificially low. For instance, if the government gives farmers a subsidy for corn, they might produce a lot more corn than people need, leading to a situation where there isn't enough demand for all that corn. So, just as a price floor creates a surplus, a subsidy can create a shortage in the market.