Changes in Agriculture: Falling Prices and Rising Costs Topic 6.3: (Causation) (jan 1, 1777 – jan 1, 1997)

Description:

The Falling Prices and Rising Costs:
The rising costs were due to an underproduction of crops like wheat and corn. When the supply would decrease, the demand would increase so the prices went up. The supply went up and the demand would go down and the prices would decrease causing deflation.

Causes:
- The overproduction of crops caused the prices to decrease.

Effects:
- The gap between the rich and poor increased.
- Farmers began to fall into debt and had to move to cities to find jobs.
- There were high-interest rates at banks.

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