Question

What was the primary reason that overproduction became a problem for businesses during the 1920s?
(1 point)
Foreign markets refused to buy American products.
New technologies made production methods less efficient.
Consumer wages did not keep up with rising prices.
Government regulations increased business operating costs.

Answer 1

Consumer wages did not keep up with rising prices.

Because incomes were uneven and wages for many workers lagged behind production growth, consumer demand couldn't absorb the large supply of goods, leading to overproduction.