A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers.This is sometimes called a

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A minimum price set by the government is known as a price floor. It can lead to an excess supply of the product because suppliers may produce more than what the consumers demand, as they are guaranteed a certain minimum price. This can result in a surplus of the product. A price ceiling, on the other hand, is a maximum price set by the government, which can lead to a shortage of the product if it is set below the market equilibrium price. A tax is a government levy on a product or service, and it does not necessarily create an excess supply or demand.

A Government Sometimes Creates an Excess Supply of a Product