How does a price floor set above the equilibrium level affect quantity demanded and quantity supplied?

Price Floor: This is a price policy in which the government establishes a minimum price below which no buyer can purchase, and it is enforced by the government.

The equilibrium price and quantity are denoted by the letters P and Q in the graphic below. If the price floor is set higher than the equilibrium price level, it becomes legally enforceable. There would be excess supply or surplus of goods and services at the minimal price level, which is higher than the equilibrium price level, because there would be more supply than demand for goods and services. Because these are the government's minimum pricing, they cannot be reduced. The price can only rise, benefiting sellers rather than consumers. The market can't be in balance because demand and supply aren't equal.