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

Answer: I agree with the statement.

The law of supply states that, other things remaining constant, supply rises with a rise in price and falls with a fall in price. In some cases this does not hold:

1. Supply of labour: At higher wage rates, after a point, workers prefer leisure and supply less labour. The labour supply curve bends backward.
2. Urgent need for cash: A seller in need of money sells more even at a low price.
3. Perishable goods: Sellers of perishable goods sell more at lower prices at the end of the day to avoid loss.
4. Expectation of a further fall in price: Sellers sell more at a lower price if they expect prices to fall further.
5. Agricultural goods: Their supply depends on weather and cannot be increased quickly even if price rises.
6. Rare articles / auction: Supply of antiques and rare paintings is fixed whatever the price.