Question

What were the factors that led to the stock market collapse on Black Tuesday?

Answer 1

Overproduction and Oversupply in Markets

In mid-1929, the economy stumbled due to excess production in many industries, creating an oversupply. Essentially, companies were able to acquire money cheaply due to high share prices and invest in their own production with the requisite optimism.

Answer 2

low wages and unemployment

Step-by-step explanation:

Before the collapse of the stock market on Black Tuesday the production of goods had declined due to increase in unemployment rate and these low wages made consumers to have limited purchasing power and the goods and Stocks were left in excess of their real value i.e nobody was willing to purchase the stock at their market value.

So many industries had collapsed during this time and had to lay off workers which contributed to the increase in unemployment and those still working were paid very low wages so they couldn't afford t buy goods