What can be the risk of over-dependence on a local resource in handicrafts?

Correct answer: If the resource declines, both production and income may be affected

The direct answer is A: if the local resource declines, both production and income may be affected. A local resource may be a particular plant, fibre, wood, clay or other material used by artisans. First, if the resource becomes scarce, less raw material is available. Second, fewer articles can be made. Third, sales may fall, so family income can also fall. Depending too much on one source is therefore risky; using several suitable sources, saving material and planning alternatives can reduce the danger. Option A correctly shows this chain. B is wrong because income cannot always remain stable when the basic material disappears. C is wrong because customer demand does not automatically rise when supply is threatened. D is wrong because alternative materials may be costly, unsuitable or unavailable. Exam cue: one resource means one major point of failure.