statement which is true about Binding price floors is that they will create Deadweight loss.
When the government establishes a required price for an item or goods above equilibrium, this is known as a price floor. Because the government prohibits prices from falling below this level, this price confines the market for this good. Because the government inflates the price artificially, some consumers will refuse to pay it. This results in unsold merchandise, hence creating a surplus of that product.
By enacting legislation, governments can artificially inflate the prices of particular items, create economic instability, and impose price floors on these goods. Through these regulations, governments can make it illegal to sell a product at market rates or below a minimum price. Governments can also set price floors through demand manipulation. Governments control and generate false demand by purchasing surplus goods, which drives the price up and allows it to remain above the price floor.
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