If the government imposes a price floor on wheat, and the price is above the market equilibrium level, there will be a surplus of wheat.

Question

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When the government sets a price floor above the market equilibrium price, the price at which wheat is sold is higher than the price at which consumers are willing to buy. This leads to a surplus of wheat because producers are willing to supply more wheat at the higher price, but consumers are not willing to buy as much at that price.

If the Government Imposes a Price Floor on Wheat, and the Price