When supply shifts to the left, it would make the surplus from a price floor smaller, other things equal.

Question

Quizplus · Accepted Answer

When supply shifts to the left, it means that there is now less supply in the market. This would make the surplus from a price floor smaller because there would be less quantity supplied at the price floor level. As a result, there would be less of a surplus of goods, which would decrease the effectiveness of the price floor in creating a surplus.

When Supply Shifts to the Left, It Would Make the Surplus