What effect does the implementation of a price floor have on market equilibrium, particularly in the context of government intervention and price controls?

A price floor is a minimum price set by the government for a good or service, meaning sellers cannot sell below this price. When a price floor is implemented, it can lead to a situation where the price is higher than the market equilibrium price, which is where supply and demand meet. This can cause a surplus because more people are willing to sell at the higher price, but fewer people want to buy, resulting in unsold goods. For example, if the government sets a price floor for milk at $3 per gallon, but the market equilibrium price is $2, farmers might produce more milk than consumers are willing to buy at that price. Overall, while the intention of a price floor is to protect producers, it can disrupt the natural balance of supply and demand.