Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression.(1 point) Responses 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 received no federal relief funding during the Hoover administration. Farmers and refinery owners received no federal relief funding during the Hoover administration. 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 often went against government orders to produce high surpluses to make up for profit losses.
The correct answer is 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. During the Great Depression, the price of agricultural products such as cotton dropped significantly due to oversupply. In an attempt to mitigate the effects of falling prices, the government allowed farmers to continue producing large amounts of cotton, which further contributed to the surplus and subsequent price drop. Similarly, in the oil industry, there was a decline in demand and prices, leading to profit losses. Refinery owners were allowed by the government to produce more oil in hopes of increasing revenue and stabilizing the market. However, this overproduction only exacerbated the problem and caused prices to plummet further.
