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Identify and explain the concept from given illustration.Price of old coins, antiques increases as demand increases, but supply cannot be increased. |
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Answer» Concept: Exception to the law of supply. Explanation : As per the law of supply, when the price of a product rises, supply increases, but in this case supply cannot be increased. So, this is an exception to the law and its supply curve is a vertical straight line instead of upward sloping. Thus, this is an exception to the law. |
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