QUESTION IMAGE
Question
impact of the new deal quick check
what was the benefit of the agricultural adjustment administration (aaa) limiting the production of crops and livestock?
(1 point)
o to raise the quality of agricultural products
o to reduce the power of large commercial farms
o to raise the prices of agricultural products
o to increase the power of sharecroppers and tenant farmers
During the Great Depression, there was an overproduction of agricultural goods, which led to very low prices. By limiting production (supply), according to the law of supply and demand, when supply decreases (assuming demand remains relatively stable or increases slightly), the price of the good (agricultural products in this case) will rise. The AAA aimed to help farmers by increasing their income through higher prices for their crops and livestock.
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To raise the prices of agricultural products.