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When the government fixes a price above the equilibrium price, it essentially sets a price floor, which is legally the minimum price that can be charged for a good or service. In the context of microeconomics, the equilibrium price is the point where quantity demanded equals quantity supplied. Any deviation from this equilibrium due to government intervention disrupts the natural balance of the market. When the price floor is set above the equilibrium, suppliers are willing to produce and sell more of the ________ ____ ____ __________ ________ ______ ________ _____ ___ ________ ______ _____.
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