USA HISTORY

Detailed explanation-1: -When the production costs of crops exceed the selling prices, then the farmers suffer. They lose their money rather than profit. It is very hard for them to gain the benefits of excess production. They become disappointed about future production.

Detailed explanation-2: -Overproduction in agriculture-as farming techniques improved and demand from Europe dropped, farmers were producing too much food. This caused a fall in prices, and drop in profits, so thousands of farmers had to sell their farms.

Detailed explanation-3: -Overproduction and Oversupply in Markets In mid-1929, the economy stumbled due to excess production in many industries, creating an oversupply. Essentially, companies could acquire money cheaply due to high share prices and invest in their own production with the requisite optimism.

Detailed explanation-4: -Overproduction, or oversupply, means you have too much of something than is necessary to meet the demand of your market. The resulting glut leads to lower prices and possibly unsold goods. That, in turn, leads to the cost of manufacturing – including the cost of labor – increasing drastically.