How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy?

When businesses produced more goods than consumers could buy, unsold inventories built up. Prices fell as businesses tried to sell the excess goods, but weak consumer demand meant the goods still did not sell well. Production and business activity then slowed, weakening the economy; this matches “Consumer demand decreased, prices decreased, and the economy slowed.”

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