Final answer:
The Colorado Territory brought geographical challenges and resource competition to New Mexico, as settlers and prospectors increased in the region.
Step-by-step explanation:
The formation of the Colorado Territory affected New Mexico principally through geographical challenges and resource competition. When territories that had formerly been a part of Mexico, such as New Mexico and California, were incorporated into the United States following the Mexican-American War, many socio-political issues arose. For New Mexico, the creation of the Colorado Territory likely resulted in increased competition for resources, as prospectors and settlers moved into the region seeking opportunities, particularly during the time frames surrounding the gold rushes. Additionally, geographical challenges were presented due to border adjustments that could affect access to certain lands and resources. Hence, the effect of the Colorado Territory on New Mexico was not one of improved resources or geography, but rather of competition and challenge.