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If a farmer depends only on a local trader, why can bargaining weakness occur?

Answer and explanation

Correct answer: Because selling options become limited

Direct answer: Option A, selling options become limited. Bargaining power is the ability to seek a fair price or refuse an unfair offer. Reasoning: if a farmer has only one local trader, there is little competition; the trader may set terms, especially when the crop is perishable or the farmer needs urgent cash; the farmer then has less power to negotiate price, timing and deductions. Option A is correct. Option B is wrong because dependence does not stop crops from growing. Option C is wrong because traders cannot decide the weather. Option D is wrong because market dependence does not prevent seed from entering soil. The issue is not that every trader exploits farmers, but that too few alternatives can create vulnerability. Memory cue: more buyers usually mean more choice and stronger bargaining.

Related tags

AgricultureLocal-TraderBargainingMarket-Options

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