For the wheat market qD = 200 – p and qS = 120 + p (p in rupees per kg, q in kg), at what price will there be an excess supply of 30 kg?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 55
Given:
qD = 200 − p
qS = 120 + p
Excess supply = 30 kg
Excess supply is quantity supplied minus quantity demanded: ES(p) = qS − qD.
\( ES(p) = (120 + p) - (200 - p) \)
\( ES(p) = 2p - 80 \)
\( 2p - 80 = 30 \)
\( 2p = 110 \)
\( p = 55 \)
The excess supply is 30 kg at Rs 55.
Option (1) Rs 25 — the gap is also 30 kg here, but demand is the larger, so it is an excess demand.
NCERT (2026-27): |
