Final answer:
The automobile industry suffered from overproduction during the early 1920s, leading to a surplus and a decline in prices.
Step-by-step explanation:
The industry that suffered from overproduction during the early 1920s was the automobile industry.
During this time, the production of automobiles increased significantly due to advancements in mass production techniques, such as those pioneered by Henry Ford in Detroit.
However, the increasing supply of cars eventually outpaced the demand, leading to a surplus and a decline in prices. This overproduction and subsequent drop in profits had a negative impact on the automobile industry during the early 1920s.