Price is regulated to be no lower than Pmin.Producers would like to supply Q2,but consumers will buy only Q3.If producers indeed produce Q2,the amount Q2-Q3 will go unsold and the change in producer surplus will be A-C-D.In this case,producers as a group may be worse off.Price is regulated to be no lower than Pmin. Producers would like to supply Q2 , but consumers will buy only Q3 . If producers indeed produce Q2 , the amount Q2 – Q3 will go unsold and the change in producer surplus will be A - C - D. In this case, producers as a group may be worse off