Question

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy?

Prices fell as consumer demand increased, and the economy grew.
Prices increased along with consumer demand, and businesses prospered.
Prices fell as consumer demand decreased, and the economy slowed down.
Prices increased but consumer demand decreased, and the economy grew.

Answer 1

"Prices fell as consumer demand decreased, and the economy slowed down" is the best option since people had less spending power, meaning they could buy fewer goods.

Answer 2

overproduction of goods in the 1920s affected consumer prices and the economy where Prices fell as consumer demand decreased, and the economy slowed down

Step-by-step explanation

Overproduction or over supply of goods and services means that there is excess supply than the demand of the products and services that are being offered to the market. This situation leads to prices of those goods and services to lower and also many others to remain unsold. In 1920s it affected consumer prices and the economy where Prices fell as consumer demand decreased, and the economy slowed down.