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

- Consumer demand increased, prices decreased, and the economy grew.

- Prices increased along with consumer demand, and the economy grew.

- Consumer demand decreased, prices decreased, and the economy slowed.

- Prices increased, consumer demand decreased, and the economy grew.

Question

History

Magdalena Hampton

17 September, 16:16

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

- Consumer demand increased, prices decreased, and the economy grew.

- Prices increased along with consumer demand, and the economy grew.

- Consumer demand decreased, prices decreased, and the economy slowed.

- Prices increased, consumer demand decreased, and the economy grew.

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Answers (1)

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Jade Hernandez · Answer 1

Consumer demand for these products decreased because everyone already had what they needed from these companies. This ended up causing prices to fall which, in turn, led to the economy slowing down. This coupled with bank policies led to a bust in the economy that lasted the better part of an entire decade.