Which statement is correct?

A. A price floor increases producer surplus

B. A price floor increases consumer surplus

C. A price floor reduces the price

D. A price floor increases the quantity demanded

In a perfectly competitive market, a production quota

A. sets a minimum level of production that domestic firms must produce.

B. has the effect of keeping the market price below the equilibrium level.

C. will create excess supply in the market.

D. creates no deadweight loss.