Which of the following statements accurately describe the effects of a binding price floor in a competitive market? Select all that apply.

A binding price floor is a minimum price set by the government that is above the equilibrium price, meaning it is higher than the price at which supply and demand meet. When this happens, producers cannot sell their goods for less than this price, which can lead to a surplus because more products are supplied than consumers are willing to buy at that higher price. For example, if the government sets a price floor of $10 for milk, but consumers only want to buy milk at $8, farmers will produce more milk than people want to purchase, resulting in excess milk that goes unsold. This situation can lead to wasted resources and can hurt consumers who have to pay more for the product. Therefore, a binding price floor can create imbalances in the market, causing problems for both producers and consumers.