State two exceptions to the law of supply.

Ans. Sometimes sellers tend to suppress the supply of a product when the price rises. Thus, creating an artificial scarcity they expect a further increase in the price of the product. This is an apt example of an exception to the law of supply.

In the labour market, the rise in price does not always increase supply. As labourers get accustomed to higher wages, they often tend to spend more time in leisure. Hence, the law of supply is not followed here.