How do agricultural price supports, implemented as price floors, impact economic welfare in competitive markets?

Agricultural price supports, when set as price floors, are minimum prices that the government guarantees farmers will receive for their products. This means that even if the market price falls below this level, farmers are still paid the floor price, which helps to protect their income. However, while this can benefit farmers, it can also lead to economic inefficiencies. For example, if the price floor is set too high, it may cause a surplus of goods because consumers might buy less at the higher price, leading to wasted resources. Overall, while price floors can help farmers, they can also distort market dynamics and reduce overall economic welfare by creating imbalances in supply and demand.