All the alternatives are correct regarding how increased food production led to the development of craftspeople. Because the development of agriculture allowed people to have other interests besides looking for what to eat in the day.
An increase in food production meant that a larger population could be maintained, hence the settlements and population growth, turning into cities.
As agriculture was more efficient, not all peasants needed to cultivate, giving them more time and freedom to dedicate themselves to other activities, such as handicrafts.
Farmers needed activities to take their mind off work, so they used handicrafts as a sustainable and cultural representation activity.
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