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Economic bubble video Assignment

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Q Question: Introduction/background/example of economic bubble: Give reference on the basis of the tulip bubble during the 17th century, what pushed up tulip prices? What caused the “Tulip mania” bubble to burst? Use the demand/supply model to explain these changes.

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Solution: Economic Bubble or Price bubble is a situation in the market where Asset prices are higher than the intrinsic value of the commodity. The prices keep on plummeting and ultimately take the shape of an inflated bubble. This situation could be better understood by considering the example of a real estate market where at some of time the prices of property or houses