Discuss two exceptions to the Law of Supply.

1.	Discuss two exceptions to the Law of Supply.
Answer» Exceptions to the Law of Supply The law of supply does not apply in the following cases: 1. In the case of agricultural products whose supply is affected by natural factors. 2. In the case of perishable goods like food. In the case of these goods, the seller is willing to sell more units at decaying prices. 3. In the case of goods having a social distinction. The supply of goods will remain limited even if their prices are high.

Answer»

Exceptions to the Law of Supply

The law of supply does not apply in the following cases:

1. In the case of agricultural products whose supply is affected by natural factors.

2. In the case of perishable goods like food. In the case of these goods, the seller is willing to sell more units at decaying prices.

3. In the case of goods having a social distinction. The supply of goods will remain limited even if their prices are high.

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