Final answer:
Price floors lead to surpluses while price ceilings lead to shortages.
Step-by-step explanation:
A price floor is a minimum price set by the government, while a price ceiling is a maximum price set by the government. Price floors lead to surpluses because the price is set above the equilibrium price. This means that quantity supplied will exceed quantity demanded, leading to an excess supply or surplus. On the other hand, price ceilings lead to shortages because the price is set below the equilibrium price. This means that quantity demanded will exceed quantity supplied, leading to an excess demand or shortage.