Final answer:
A price floor sets the minimum price for a product and creates excess supply if above equilibrium, but it does not directly shift the demand or supply curves, so the correct answer is d. neither.
Step-by-step explanation:
A price floor is a government- or group-imposed price control that sets the minimum price at which a product can be sold. Implementing a price floor does not shift demand or supply curves directly; instead, it can create excess supply if the price floor is set above the equilibrium price, because suppliers are willing to supply more at the higher price, but consumers are not willing to buy as much.
In a diagram, the supply and demand curves intersect at the equilibrium point. When a price floor is imposed and it is above this equilibrium, it creates a horizontal line indicating that minimum price. The area between the new price and the equilibrium price represents the surplus of the product caused by the price floor.
Thus, the correct answer would be:
d. neither