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What problem can arise from too much dependence on middlemen in handicraft business?

Answer and explanation

Correct answer: Artisan may get lower price

The direct answer is A: the artisan may receive a lower price. A middleman is a person or business between the producer and the final buyer. Middlemen can sometimes provide useful services such as transport, storage, or access to markets, but too much dependence may weaken the artisan’s bargaining power. The artisan may have limited information about the final market price and may have to accept the amount offered by the middleman. The selling price may include several margins, while the original maker receives only a small share. Option A is correct because lower payment to the artisan is a possible result of excessive dependence. Option B is impossible and unrelated: a product does not become gold. Option C is wrong because middlemen do not make raw materials endless. Option D is wrong because dependence does not mean customers will always visit the artisan’s home. The fairer solution may include direct selling, cooperatives, transparent prices, and better market information. Memory cue: more dependence can mean less bargaining power and a lower producer share.

Related tags

HandicraftsMiddlemenBargaining-Power

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