Price Floor:Surplus :: Price Ceiling:?

A price floor is a minimum price set by the government for a good or service, which means sellers cannot sell it for less than this price. When a price floor is set above the market equilibrium price, it can lead to a surplus, where the quantity supplied exceeds the quantity demanded. This happens because at the higher price, more producers want to sell their products, but fewer consumers are willing to buy them. In contrast, a price ceiling is a maximum price set by the government, preventing sellers from charging more than this price. When a price ceiling is set below the market equilibrium price, it can lead to a shortage, where the quantity demanded exceeds the quantity supplied, as more people want to buy the product at the lower price, but producers are not willing to supply enough of it.