Explain any four exceptions to the law of supply.
Please give answer in ur own words
Answers
1. Exceptions of a fall in price
If the firms anticipate that the price of the product will fall further in future, in order to clear their stocks they may dispose it off at a price that is even lower than the current market price.
2. Sellers who are in need of cash
If the seller is in need of hard cash, he may sell his product at a price which may even be below the market price.
3. When leaving the industry
If the firms want to shut down or close down their business, they may sell their products at a price below their average cost of production.
4. Agricultural output
In agricultural production, natural and seasonal factors play a dominant role. Due to the influence of these constraints supply may not be responsive to price changes.
hope it helps
the law of supply means other things being equal, the supply of a commodity extends with a rise in price and contracts with a fall in price.
# FOUR EXCEPTION OF LAW OF SUPPLY ARE. FOLLOWING :
1.Agricultural Goods
2.Future Expectations
3.Perishable Goods
4.Rare Articles
YOU CAN EXPLAIN THIS POINT EASILY,I HOPE THIS IS HELPFUL