In the graph to the right, the price floor is set at price P_F, well above the equilibrium price of P*. At P_F, the quantity demanded Q_D is well below the quantity supplied Q_S. A surplus arises generating downward pressure on the market price. Unless the surplus is purchased and kept off the market or producers are paid not to produce, the price floor will be ineffective and the market price will move naturally toward P*. Price floors are not cheap policies!