Question

PART A: What is the central idea of the text? A Tulip mania created a new species of tulip that is popular today. B Tulip mania caused many countries to develop their own tulip markets. C Tulip mania refers to the rapid rise and fall of lupids in popularity and price. D Tulip mania refers to a time when the Netherlands became Europe's richest country.

Answer 1

Answer:

C

Explanation:

Tulip mania is a period in the 17th century when prices of tulips in the Netherlands went ridiculously high. It was referred to as the first financial bubble. It can be defined a massive rise in the price of an asset or sector, there occurs inflated prices due to positive-feedback cycle. The price of a single tulip becomes more expensive than a house and later, many investors realize that they are merely holding a tulip that they sold their houses for. Soon, the prices of the tulips collapsed due to a massive sell-off and many who have sold their properties to get the tulips went bankrupt.