A price floor set above the equilibrium price in a competitive market will always lead to increased consumer spending in that market, as producers gain higher profits from their goods.

A price floor is a minimum price set by the government for a good or service, and it is usually placed above the equilibrium price, where supply and demand meet. When a price floor is set above this equilibrium, it means that the price of the good is higher than what consumers are willing to pay at that level. As a result, consumers may buy less of the product because it is now more expensive, leading to a decrease in overall consumer spending in that market. For example, if the government sets a price floor on bread, making it more expensive than before, people might buy fewer loaves, which could actually hurt producers in the long run. Therefore, while producers might initially benefit from higher prices, the overall consumer spending in the market may decrease, contradicting the idea that a price floor always leads to increased spending.