The market demand curve and the market supply curve of bajra are given by:

q_D = 450 – p for 0<p<450

q_S = 150 + p

At price = 200, there will be?

Excess supply

The correct answer is Option 2: Excess supply

Putting p = 200 in demand equation and supply equation one by one.

Qd = 450 – p = 450 – 200 = 250

Qs = 150 + p = 150 + 200 = 350.

Since supply is greater than demand, there will be excess supply at the price of 200.