USA HISTORY

Detailed explanation-1: -Q. How did supply and demand affect the economy of Texas during the 1930s? Supply of products decreased, causing higher prices. Increased demand for products led to a loss of jobs.

Detailed explanation-2: -Overproduction of agricultural products like cotton and oil and gas led to a drop in prices, which led to smaller profits or no profit. – Without a profit, businesses during the Great Depression closed and workers lost their jobs.

Detailed explanation-3: -The state’s economy was further crippled by the devastating effects of the Dust Bowl. In the second half of the 1930s, as the Depression wore on, a major drought devastated the southern plains. The Texas Panhandle suffered greatly, as winds eroded the parched land and made life on farms and in towns all but impossible.

Detailed explanation-4: -There was also overproduction of goods in manufacturing and agricultural industries. Because factories produced more goods than there was demand for, there was an oversupply, which led to lower prices. Many companies suffered losses due to this, which led to their share prices plummeting.

Detailed explanation-5: -How did New Deal programs change the lives of Texans during the Great Depression? Gas rationing helped to reduce traffic in busy cities. Cotton prices were fixed to keep farmer on the land. Thousands found employment building roads and bridges.