Create a graph illustrating the effect of a price floor on the quantity of good. In three or four sentences, summarize the graph. Upload the graph below.

    Any price control by the government, whether in the form of a price ceiling or a price floor, is damaging to the market and leads to inefficiency. With the help of the graph below, we will be able to comprehend.

                                      (INSERT GRAPH HERE)

    The market was at a $4 equilibrium, and the quantity in the market was 100. Following a storm, the government decided to set a price ceiling of $2 for the good. According to the government, a reduced market price will help people to build demand in difficult times.

    At $2, the total supply in the market is 75, while demand has climbed to 125, resulting in a 50-unit shortfall. It will raise the price of the goods to $5, resulting in a market deadweight loss. It may also increase the market's black marketing of items. Overall, market price control regimes are bad since they affect the intended benefactors, namely the customer.

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