Interactive simulator
Price Floor and Surpluses Simulator
A price floor is a legal minimum price set above the equilibrium price. This simulator draws a floor line on the supply-and-demand graph: quantity supplied rises along the supply curve while quantity demanded falls along the demand curve, and the gap is the surplus. Move the floor to see how the surplus grows the further the floor sits above equilibrium, and how a non-binding floor has no effect. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.
Equilibrium solves Qd = Qs, so P* = (a − c) ÷ (b + d). Shifting demand changes a; shifting supply changes c. A ceiling only bites when set below P* (creating a shortage); a floor only bites when set above P* (creating a surplus).
How to use it
Drag the price-floor slider above the equilibrium price.
Compare quantity demanded and quantity supplied at the floor price.
Observe the surplus gap and try a floor close to equilibrium to see it shrink.
What you will learn
- Explain why a binding price floor creates a surplus.
- Relate price floors to minimum-wage debates.
- Identify binding vs non-binding floors.
Model notes
The model is static with linear curves; it omits employment effects, automation responses, and long-run adjustments. It illustrates the mechanics of price floors, not real labor-market outcomes.