7 Exceptional Cases where the Law of Supply does not Operate
There are certain exceptional cases, where the law of supply does not operate. They are discussed below: (1) Rare Goods: The law is not applicable in case of rare art pieces of painting. The supply of such things is fixed. Whatever may be price of such commodities, the supply will remain the same. Image Source: investingtrainer.com (2) Labour Market: ADVERTISEMENTS: The law of supply does not hold good sometimes in the labour market. A rise in price of labour (wages) sometimes leads to a fall in amount of labour supplied in the market.The reason is simple. First, with the rise in wages, labourers are now able to earn the same amount of income by working for a smaller number of hours. Secondly, with the rise in general level wages, there…