Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression.(1 point)
Responses
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
Farmers and refinery owners received no federal relief funding during the Hoover administration.
The correct answer is: Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
During the Great Depression, the demand for cotton and oil significantly decreased, leading to a surplus in supply. In an attempt to stabilize prices and prevent further economic decline, the state and federal governments implemented measures to reduce production. However, many farmers and refinery owners disregarded these orders and continued to produce large quantities of cotton and oil in an effort to offset their profit losses. This further contributed to the drop in prices in Texas during the beginning of the Great Depression.