Why this is mistaken
At a binding floor, buyers determine the short-side traded quantity in the simple model. Some sellers can receive a higher price; others may not sell. Producer surplus must be computed over traded units, not every offered unit.
Repair the analysis with seller-level quantities, allocation rules, production and inventory decisions, carrying or disposal cost, eligibility, entry, enforcement, and distribution. Accounting effects need separate transaction and inventory evidence.
A higher controlled price is one term in the incidence analysis, not a proof of universal seller benefit.
Where to watch
When this mistake may appear
- A minimum price lies above modeled equilibrium.
- Quantity supplied exceeds quantity demanded at the floor.
Check your work
Your work may contain this mistake if:
- Multiplies the floor by quantity supplied as if every offered unit sold.
- Says all sellers gain from the higher displayed price.
- Treats excess supply as ending inventory without production and ownership evidence.