What is the biggest long-term loss of underpricing in handicrafts?
Answer and explanation
Correct answer: The artisan does not receive fair value for labour, skill, and material costs
Underpricing means setting a price so low that the artisan does not recover fair value for labour, skill, raw materials, and other costs. In the long run, this makes income unsustainable and may prevent artisans from maintaining quality or continuing production. Customer loyalty does not automatically result merely from a low price. Exam tip: Fair pricing should cover costs, recognise skill, and allow a reasonable livelihood margin.
Frequently asked questions
What is the correct answer to this question?
The artisan does not receive fair value for labour, skill, and material costs
Why is this the correct answer?
Underpricing means setting a price so low that the artisan does not recover fair value for labour, skill, raw materials, and other costs. In the long run, this makes income unsustainable and may prevent artisans from maintaining quality or continuing production. Customer loyalty does not automatically result merely from a low price. Exam tip: Fair pricing should cover costs, recognise skill, and allow a reasonable livelihood margin.
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.
