Final answer:
Enacting a price floor above the equilibrium level for fish leads to a market surplus, inefficiency by reducing social surplus, and can potentially spawn black markets.
Step-by-step explanation:
The enactment of a price floor for fish, set above the equilibrium level, can lead to several likely unintended consequences in the market.
One of these consequences is the creation of a surplus, where the quantity supplied (Qs) becomes greater than the quantity demanded (Qd), because at the higher price, consumers are willing to buy less while producers are willing to supply more. This surplus often leads to inefficiencies and can result in wasted resources or unsold stock.
Beyond this, the imposition of a price floor can lead to a decrease in social surplus, which is a measure of the overall benefits that the market provides to the society. With reduced transactions, both the consumer and producer surplus shrink, resulting in lost welfare for both parties.
More complex unintended consequences might include the emergence of black markets where fish is sold illegally at prices below the floor, negatively affecting legitimate business and potentially reducing the quality and safety of products consumed.