Final answer:
A price floor set above the equilibrium price will result in an excess supply or surplus of the good.
Step-by-step explanation:
A price floor is a minimum price set by the government that prevents a price from falling below that level. When a price floor is set above the equilibrium price, it creates an excess supply or surplus of the good.
For example, let's say the equilibrium price of a good is $5, but the government sets a price floor at $7. At this price, suppliers are willing to supply more of the good than consumers are willing to buy, leading to an excess supply. This means there will be a surplus of the good in the market.
In summary, a price floor set above the equilibrium price will result in an excess supply or surplus of the good.