Q.There are no exceptions to the law of supply.

Disagree. The law of supply is not universal; there are exceptions where a rise in price does not lead to a rise in supply — agricultural products, perishable goods, backward-bending supply of labour, rare or artistic goods, and distress/urgent sales. Hence it is wrong to say there are no exceptions.

The law of supply states that, other things remaining constant, the quantity supplied of a good rises when its price rises and falls when its price falls (a direct relationship). But this law does not hold in every case, so the statement must be disagreed with. The main exceptions are:

1. Agricultural goods: Their supply depends on the monsoon, soil and the crop already grown; supply cannot be increased in the short run merely because price has risen.

2. Perishable goods: Goods like vegetables, fish and flowers must be sold quickly, so sellers offer them for sale even if the price is low.

3. Backward-bending supply of labour: Beyond a certain wage, a worker may prefer more leisure and supply less labour even though the wage (price) has risen.

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