Question

State and explain the law of supply. What are the exceptions to this law? (Answer in detail)

Answer 1

SUPPLY :

Supply is the quantity of certain goods or services which are provided by the desired suppliers to the market. 

THE LAW OF SUPPLY -

This is a direct relationship between the prices of goods and it's supply . If the price of the goods rise then their supply will also rise . In other words , The higher the price , The higher the quantity supplied.

EXCEPTIONS -

Following are the exceptions to this law of supply -

Perishable Goods

Agricultural Goods

Rare Articles

Auction Sale

Price expectation of sellers