Answer:
2 create surpluses by setting the price above equilibrium
Explanation:
Price Floor is the minimum mandated price by the government. It is usually above the free equilibrium price level. It is intended to protect the sellers from under pricing in free markets.
Eg - Minimum Support Price for farmer's agricultural products
Since, supply is directly related & demand is inversely related to price. Price above the equilibrium level price creates : More Quantity Supplied & Less Quantity Demanded.
Hence, this higher Supply > Demand creates surpluses of the commodity in the market.
