When a price floor is set above the equilibrium price, it can lead to a surplus in the market because the quantity supplied exceeds the quantity ____. This can create inefficiencies in the market.

When a price floor is set above the equilibrium price, it means the minimum price for a good or service is higher than what buyers and sellers would naturally agree upon. In this situation, producers are encouraged to supply more of the good because they can sell it at a higher price. However, consumers may not want to buy as much at this higher price, leading to a situation where the quantity supplied is greater than the quantity demanded. For example, if the government sets a price floor for wheat that is higher than the market price, farmers may grow more wheat, but consumers might buy less, resulting in unsold wheat piling up. This surplus can create inefficiencies, as resources are not being used in the most effective way, leading to wasted products and potential losses for producers.