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A price floor is a government-imposed minimum price set above the equilibrium price in a market.
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Surplus: When a price floor is set above the equilibrium, it creates an excess supply of goods or services.
Deadweight loss: The inefficiency caused by a price floor, where there is lost economic welfare due to reduced quantity traded.
Minimum wage: A specific type of price floor that applies to labor markets, setting a minimum hourly wage rate.