Q.State with reason whether you agree or disagree with the following statement:
There are some exceptions to the law of supply.

Agree — the law of supply has genuine exceptions such as the supply of labour (backward-bending curve), perishable goods, agricultural products, rare/artistic goods, and financial assets, where a rise in price does not lead to a rise in supply.

Exceptions to the law of supply

1. Supply of labour (backward-bending supply curve) — up to a point higher wages induce more work, but beyond a certain wage a worker prefers leisure to more income, so the supply of labour actually falls as wages rise.

2. Perishable goods — sellers of perishables like fish, vegetables and flowers try to sell the whole stock quickly even at falling prices, because holding stock leads to spoilage; supply does not fall when price falls.

3. Agricultural goods — farm output depends on the season, land, weather and the crop cycle, so it cannot be increased immediately even if prices rise.

4. Rare, artistic and antique articles — the supply of old paintings, rare coins, antiques and works of famous artists is fixed and cannot be increased at any price.

   …