A binding price floor in a competitive market guarantees that all suppliers will sell their products at that minimum price, resulting in no surplus or shortage of the good in the market.

A binding price floor is a minimum price set by the government that must be paid for a good or service. When this price is above the market equilibrium price, it means suppliers cannot sell their products for less than this minimum. This often leads to a surplus because suppliers are willing to produce more at the higher price, but consumers may not want to buy as much. For example, if the government sets a price floor on wheat, farmers might grow more wheat because they can sell it for more, but consumers might buy less due to the higher price. Therefore, a binding price floor does not guarantee that all suppliers will sell their products without creating a surplus in the market.