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What effect can raw material monopoly have on artisans in handicrafts?

Answer and explanation

Correct answer: Price control shifts to suppliers, which can increase artisans’ costs and dependence

When one or a few suppliers control raw materials, artisans have fewer purchasing alternatives. Suppliers may then charge higher prices or impose unfavourable terms, raising production costs and dependence. Option B is the opposite: monopoly usually weakens an artisan’s bargaining power. Exam tip: link this issue with input-market risk and low bargaining power.

Related tags

HandicraftsRaw Material MonopolyArtisan LivelihoodsInput Market RiskBargaining PowerTraditional Occupations In India HandicraftsWorkLivelihood And CareerWork Livelihood And Career

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