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.
Frequently asked questions
What is the correct answer to this question?
Price control shifts to suppliers, which can increase artisans’ costs and dependence
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Traditional occupations in India - Handicrafts.
