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

Disagree — the law of supply has several exceptions.

Stand: Disagree. The law of supply (more supplied at higher price) does not hold in the following cases:

1. Supply of labour — beyond a point, higher wages may reduce hours worked as workers prefer leisure (backward-bending supply curve).
2. Agricultural goods — output depends on nature (rainfall, soil), so supply cannot be raised at will even if price rises.
3. Perishable goods — sellers of perishables (fish, vegetables) sell the whole stock quickly even at lower prices, so supply does not fall with price.
4. Rare, antique and artistic articles — old coins, paintings and antiques are fixed in quantity and cannot be increased with price.
5. Expectation of future price changes — if sellers expect a further price rise, they may withhold supply now despite a higher current price. …