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Question
Law of supply does not apply to ______.
Options
Agricultural goods
Perishable goods
Both (a) and (b)
Neither (a) nor (b)
Solution
Law of supply does not apply to Agricultural goods and Perishable goods.
Explanation:
-
Agricultural goods: The supply of agricultural goods is often inelastic in the short term because it depends on factors such as growing seasons, weather conditions, and biological cycles, which cannot be easily adjusted in response to price changes.
-
Perishable goods: The supply of perishable goods is also less responsive to price changes because these goods cannot be stored for long periods. Sellers may be unable to increase supply in response to higher prices, as the goods would spoil.
RELATED QUESTIONS
There are no exceptions to the law of supply.
Distinguish between Contraction of Supply and Decrease in Supply
Exceptions to the law of supply:
- Constant cost of production
- Constant technique of production
- Does not apply to agricultural goods
- No change in weather conditions
Give economic terms:
Rise in the quantity supplied of a commodity due to a rise in its price, other factors remaining constant −
Find the odd word
Exception to law of supply -
Downward movement along the same supply curve should ______.
Assertion (A): The supply curve of labour slopes downwards.
Reasoning (R): After a certain point of time, when wage rate rises, the supply of labour (hours of work) tends to fall.
Identify and explain the concept from the given illustration:
Mahesh supplied (sold) more fruits at a comparatively low price due to the perishable nature of fruits.
- Assertion (A): Perishable goods are the exception to the Law of Supply.
- Reasoning (R): Perishable goods are sold in greater quantities only at higher prices.
The supply of perishable goods like milk, vegetables, fish is ______.
Discuss any two exceptions to the law of supply.
State one exception to the law of supply.
