Tobacco prices fell dramatically in the early 1600s in spite of demand increases because
A) supply was also increasing.
B) supply was decreasing.
C) new farming machinery was introduced.
D) the colonial government provided agriculture subsidies for tobacco farmers.

Question

Quizplus · Accepted Answer

The primary reason tobacco prices fell dramatically in the early 1600s despite an increase in demand was because the supply of tobacco was also increasing. This was largely due to the expansion of tobacco cultivation in the American colonies, where land was abundant and suitable for tobacco farming. As more tobacco was grown and harvested, the market experienced a surplus, leading to a decrease in prices.

Tobacco Prices Fell Dramatically in the Early 1600s in Spite