Market Demand and market supply equations are given as: qD = 200 -p, qS = 120 + p. At price of Rs. 25, there will be?

Excess demand

Putting p = 25, in equation for demand, we get, qd = 200-p

                                                            = 200- 25 = 175

and qs = 120 + 25 = 145

This clearly shows that Qd> Qs. This means there is excess demand at price = 25.