Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression. Pick ONE response:

Question

Farmers and refinery owners received no federal relief funding during the Hoover administration.
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.

Answer 1

The response that best explains why cotton and oil prices dropped in Texas at the beginning of the Great Depression is:

Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.

During the Great Depression, many farmers and producers sought to compensate for lost revenues caused by the declining market by increasing their production levels. This overproduction created an excess supply of cotton and oil, which contributed to falling prices. Rather than stabilizing the market through reduced output, many continued to produce at high levels, responding to immediate financial pressures. The resulting surplus exacerbated the decline in prices, leading to a downward spiral that negatively impacted the economic viability of these industries in Texas.