Answer:
1. Average annual income of 5000 guilders
2. the rarest tulip bulbs traded for as much as six times the average person's annual salary
3. When a currency's purchasing power decreases due to excessive inflation, serious negative economic consequences arise, including rising costs of goods and services contributing to a high cost of living, as well as high interest rates that affect the global market, and falling credit ratings as a result.
Explanation:
A number of factors contributed to the conditions that caused Tulip Mania. To start, the coin debasement crisis of the 1620s was followed by a period of prosperity in the 1630s. This prosperity coincided with an outbreak of the plague, which caused a labor shortage and increased real wages and surplus income.
The Tulip bulb market is also regarded as tulipmania where the market analysis increased the prices of the tulip extremely high that was more than the income of people.
Dutch states during the year the 1630s were deriving an average of 5000 guilders average income annually. Here, the tulip bulb prices were seen at their height that is, the prices were six times more than the average income of a person.
The data represents a fall in buying power of the people due to a fall in their income below the market price of products. Thus, it created the crash in the bubble of Tulip Bulb Market.
Learn more about Dutch and tulip incomes here;
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