Which statement best explains how farmers contributed to their own economic problems in the late 19th century?

• A. Farmers formed monopolies that artificially raised the prices of their goods.
• B. Farmers increased production, which led to lower crop prices and reduced their incomes.
• C. Farmers limited their output, resulting in widespread food shortages.
• D. Farmers refused to adopt new technologies, causing their costs to rise.

Answer: (B)

Verified step by step guidance

1. Understand the historical context: In the late 19th century, many farmers faced economic difficulties due to changes in supply and demand in agricultural markets.
2. Recognize the concept of supply and demand: When farmers collectively increase the production of crops, the total supply in the market rises.
3. Apply the law of supply and demand: An increase in supply, assuming demand remains constant, typically leads to a decrease in the market price of the goods.
4. Connect the price change to farmers' incomes: Lower crop prices mean that farmers receive less money per unit sold, which reduces their overall income despite producing more.
5. Conclude that by increasing production, farmers unintentionally caused a surplus that drove prices down, thereby contributing to their own economic problems.