Question 1

What was Tulip Mania?

Accepted Answer

Tulip Mania was a speculative frenzy in the Dutch Republic during the 1630s, when the price of rare tulip bulbs rose to extraordinary heights before collapsing in February 1637. It is often called the first recorded financial bubble.

Question 2

How much did a tulip bulb cost during Tulip Mania?

Accepted Answer

The rarest bulbs, such as Semper Augustus, reportedly sold for around 5,000 to 10,000 guilders. Since a skilled craftsman earned roughly 300 guilders a year, a single bulb could cost more than a decade of wages, or the price of a fine Amsterdam house.

Question 3

Why did tulip prices crash in 1637?

Accepted Answer

The crash came from a sudden loss of confidence rather than any change in supply. At an auction in Haarlem in February 1637, buyers simply stopped bidding, and once the belief that prices would keep rising broke, values fell by more than ninety percent within days.

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