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During the Great Depression, food was left to rot in the fields or fields that had once been actively cultivated were left fallow. Use one of the principles of economy-wide interaction to explain how this could have occurred.

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Key Concepts: Great Depression, Food Waste, Fallows, Principles Of Economy-Wide Interaction Explanation: The Great Depression was a severe economic crisis that affected the entire economy. One of the principles of economy-wide interaction is the supply-demand principle. According to this principle, the price of a product is determined by the interactions of the supply and demand factors. During the Great Depression, the demand for food dropped significantly, and as a result, farmers were left with a surplus of crops. However, the price of food did not decrease as a result, which meant that farmers were unable to sell their crops at a profit. In addition, many farmers had borrowed money to buy land or equipment, and when they were unable to sell their crops, they were unable to repay their debts. As a result, they could not afford to continue farming, and their fields were left fallow or with crops that were not harvested and left to rot. Step by Step Solution: Step 1. The Great Depression caused a significant decrease in demand for food. Step 2. Despite the decrease in demand, the price of food did not decrease due to the supply-demand principle. Step 3. Farmers were left with a surplus of crops and unable to sell them at a profit. Step 4. Many farmers were unable to repay their debts and could not afford to continue farming. Step 5. As a result, many fields were left fallow or with crops that were not harvested and left to rot.
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Question Text
During the Great Depression, food was left to rot in the fields or fields that had once been actively cultivated were left fallow. Use one of the principles of economy-wide interaction to explain how this could have occurred.
TopicAll Topics
SubjectEconomics
ClassClass 12
Answer TypeText solution:1