In a perfectly competitive market, assume the demand and supply equations of commodity Y as follows:

q_D = 500 – p

q_S = 350 + 2p

What will be the algebraic expression for excess supply?

3p-150

The correct answer is Option 2: 3p-150

Excess supply can be derived by subtracting demand from supply.

So, Qs-Qd = 350+2p – (500 – p)

                = 350 + 2p -500 + p

                = 3p - 150