Question

State with reasons, whether you 'agree' or 'disagree' with the following statement:
There are no exceptions to the law of supply.

Answer 1

There are certain circumstances under which the law of supply may not hold true. It means that the price of the commodity and its supply may not move in the same direction. Thus, the exceptions to the law of supply are as follows

• Closure of business
• Agricultural product
• Monopoly
• Competition
• Perishable Goods
• Rare goods
• Out of fashion goods