Introduction:

The law of supply is just opposite of the law of demand where a producer supply more units of a commodity at higher prices and supply less at a lower price given the cost of production, profits are likely to be high at higher prices, the greater is the inducement to the producer to produce and sell more and appropriate more profit hence more quantity supplied at higher prices and less is supplied to lower prices this relationship between the price and quantity supplied is popularly known as the law of supply. it’s states that “other things remains the same quantity supplied varies with the price that is when the price decrease supply will contract and when the price increases supply will extent”. there are certain exceptions where the supply does not respond in the typical manner to price changes. Here are some exceptions to the Law of Supply:

Exceptions:

• Generally supply expands at a higher price and contract with the fallen price but under certain other circumstances in spite of rise in price supply may not expand or even attend lower rate more quantity may be sold this will happen under exceptional situation in this case the supply curve slope backward
• If the seller is badly in need of money he will sell his product even at lower prices.
• If the seller wants to get rid of his product then also he will sell his product at reduced rate
• When future heavy fall in prices is anticipated the seller may become panic and sell at a lower price
• In case of auction, the auctioneer are interested in maximizing profit by selling more units at higher price, hear the prices determined by the bidder when selling an item in an auction the auctioneer may have some other motives to sell the product. Thus an auction sale is an exception to the law of supply.
• Resources like rare minerals or limited fossil fuels cannot be increased in supply once they are exhausted, even if prices rise significantly.
• Some agricultural products cannot be stored for long periods. If prices fall after harvest, farmers may still supply the same quantity to avoid spoilage, even though the law of supply would suggest they should supply less.
• In the short run, the supply of agricultural goods is often inelastic. Farmers cannot quickly change the quantity they supply in response to price changes because of the time it takes to grow crops.
• If producers expect the price of a good to fall in the future, they may increase current supply to sell at the higher current price, even if prices are rising. Conversely, if they expect prices to rise further, they may withhold supply to sell later at a higher price.

also read: explain the determinants of demand.