A price floor results in?

A. excess demand
B. excess supply
C. parallel market
D. hoarding of goods

Correct Answer: Option B

B. excess supply

Explanation

A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. When a market reaches a price floor, it results in an excess supply because the quantity supplied at the price floor exceeds the quantity demanded.