Question

What was the primary reason that overproduction became a problem for businesses during the 1920s?

(1 point)
Responses

Government regulations increased business operating costs.
Government regulations increased business operating costs.

Foreign markets refused to buy American products.
Foreign markets refused to buy American products.

Consumer wages did not keep up with rising prices.
Consumer wages did not keep up with rising prices.

New technologies made production methods less efficient.
New technologies made production methods less efficient.

Answer 1

Consumer wages did not keep up with rising prices.

Mass production expanded output faster than workers' purchasing power, creating excess supply that consumers couldn’t buy.