1927
Last year of production for the Ford Model T. Sales dropped to 1/3 the 1926 level. Even at prices around $200 Ford couldn't maintain sales, and by this point consumers were buying 3- and 4-year old used cars rather than a T because they perceived the used cars as better value--with more features. By the time Ford shut down production of the Model T, the company had sold well over 15 million T's. In fact, the actual number produced was 15,458,781. Closing down production of the Model T meant 100,000 workers lost their jobs. Ford closed when sales flagged, then began the design and tooling changeover that produced the new Model A.
- Excerpt from "The Automobile Technology 1920-1929" by Bryant University
Based on the information provided, which statement BEST describes one cause of the Great Depression?
Responses
A People were not buying new cars at the same rate they had in the early 1920's which led to increased unemployment.People were not buying new cars at the same rate they had in the early 1920's which led to increased unemployment.
B The automobile industry became so competitive that prices dropped to the point that companies were not profitable.The automobile industry became so competitive that prices dropped to the point that companies were not profitable.
C Newer models of cars became so expensive that consumers could not afford them so automobile companies had to fire employees to cut costs.Newer models of cars became so expensive that consumers could not afford them so automobile companies had to fire employees to cut costs.
D High unemployment rates in the mid 1920's led to less people purchasing cars which caused prices to drop and caused car companies to close.High unemployment rates in the mid 1920's led to less people purchasing cars which caused prices to drop and caused car companies to close.