consider a good with a price floor that is above the equilibrium price. if demand decreases, what will happen to the price in the market and the amount produced?

With a binding price floor (set above equilibrium), the market price stays at the floor, even if demand falls, so the price does not decrease.

However, when demand decreases, the quantity that buyers are willing to purchase at that floor price becomes even smaller, so the amount actually sold/produced falls and the surplus grows.

So:

• Market price: remains at the (unchanged) price floor.

• Quantity produced/sold: decreases, and excess supply (surplus) becomes larger.