A price floor results in

A price floor is a government-imposed minimum price that must be charged for a particular good or service. When a price floor is set above the equilibrium price, it creates a situation where suppliers are willing to supply more of the product than consumers are willing to buy, leading to an excess supply or surplus. This means that there will be a lot of unsold goods that will pile up, as suppliers cannot sell them due to the high price floor. Furthermore, price floors can create inefficiencies in the market by discouraging competition and reducing economic welfare. In some cases, suppliers may hoard goods in order to try and wait for prices to increase or may resort to the parallel market to sell goods at a lower price, undermining the purpose of the price floor.