The government sets a price floor for corn,which is above the equilibrium price of corn.As a result

Question

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A price floor above the equilibrium price creates an excess supply (or surplus) of corn because suppliers are willing to supply more corn at the higher price, but consumers are willing to buy less at that price. This surplus leads to deadweight loss, which is the loss of consumer and producer surplus due to the government intervention. In summary, there is a surplus of corn and a deadweight loss when the government sets a price floor above the equilibrium price.

The Government Sets a Price Floor for Corn,which Is Above