Question

How the overproduction of goods in the 1920s affected consumer prices, and in turn, the economy?

Answer 1

The correct answer is C. Consumer demand decreases, price decreases, and economy slowed.

Overproduction is termes as excess supply of products which are being taken to the market.

When production is high will lead to low prices and many goods which will remain unsold and it may result to unemployment.

The demand also will go down. Overproduction can occur because of overinvestment of the previous.

Answer 2

C) Consumer demand decreased, prices decreased, and the economy slowed.