When a government sets a price floor above the equilibrium price, it creates a situation where the quantity supplied __________ the quantity demanded, leading to a surplus in the market.

A price floor is a minimum price set by the government for a good or service, which means it cannot be sold for less than this price. When the price floor is set above the equilibrium price, which is where supply and demand balance, it leads to more of the good being produced than people want to buy. This happens because producers are encouraged to supply more since they can sell at a higher price, while consumers are less willing to buy at that higher price. For example, if the government sets a price floor for milk at $3 per gallon, but the equilibrium price is $2, farmers might produce 100 gallons, but consumers might only want 70 gallons. This difference creates a surplus of 30 gallons of milk in the market, illustrating how a price floor can disrupt the balance between supply and demand.