The Dutch Tulip Bulb Craze in 1637 demonstrated how interest in a market leads to an increase in prices and a greater number of investors. As prices rose too high too quickly, the market expanded in a challenging way before inevitably crashing.
At the beginning of the Dutch Tulip Craze, demand for the unusual, multicolored tulips increased dramatically. Dealers selling the popular tulips began hoarding whatever bulbs they could get their hands on. Demand for Dutch tulips was so high that soon tulip farmers did not have enough land, money, or bulbs to maintain an adequate supply. More land would have to be bought or developed, and more workers would be required to keep up with demand. The goal for the farmers and dealers