In Market Distortions - Altering the Supply and Demand Equilibrium
I discuss price floors
- where the government sets a minimum price above where the market equilibrium price would normally be. In such a situation there is a 'dis-equilibrium' in the market, since the quantity supplied will exceed the quantity demanded at the price floor level.
gives a real world example of what happens in the market for minimum wage labor when quantity demanded exceeds quantity supplied: Low-Wage Workers Are Often Cheated, Study Says