Quick Answer: Which Groups In European Society Benefited Most From The Price Revolution?

How did the price revolution change the European economic system?

The price revolution also gave a boost to capitalism. The demand for goods and services grew as the population grew – Because there were more people than goods, sellers could RAISE the prices. 2. The increase flow of gold and silver also fueled inflation – it was used to make money.

Who did the price revolution affect?

The inflation rate was only about 1 to 2% in most of Europe (a low rate by today’s standards), but because this was the first price rise in centuries, it greatly affected the economy. Some poorer workers were hurt by this inflation, protesting that the prices were too high and unjust.

What was the effect of the price revolution?

During the revolution, precious metals from America were extracted in bulk and traded at lower prices than crafted or agricultural products. The mass exodus of Spanish to America led to increased inflation and the near collapse of the Spanish monarchy due to bankruptcy.

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Who was most adversely affected by the price revolution?

What did the price revolution entail? High inflation, which affected the nobles most and cities. You just studied 7 terms!

What two factors caused the price revolution?


  • Influx of gold and silver.
  • European silver production.
  • Quantity theory of money.
  • Debasement.
  • Black Death.
  • Urbanization.
  • Population and agricultural growth.
  • Spain.

Which was a major cause of European exploration?

There are three main reasons for European Exploration. Them being for the sake of their economy, religion and glory. They wanted to improve their economy for instance by acquiring more spices, gold, and better and faster trading routes. Also, they really believed in the need to spread their religion, Christianity.

What was the most important factor behind the price revolution?

By the ‘ price revolution ‘, Wiebe meant the general rise in commodity prices which occurred in western Europe during the 16th century, the primary cause of which according to him was the influx of silver from the new Spanish possessions in America.

When did the Commercial Revolution start?

The Commercial Revolution consisted of the creation of a European economy based on trade, which began in the 11th century and lasted until it was succeeded by the Industrial Revolution in the mid-18th century. Beginning with the Crusades, Europeans rediscovered spices, silks, and other commodities rare in Europe.

What was the price revolution quizlet?

What was the Price Revolution? Food prices rose twice as much as other goods; as a result, farmers took advantage of this and found an opportunity for profit.

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How much gold was taken from the New World?

Between 1500 and 1650, the Spanish imported 181 tons of gold and 16,000 tons of silver from the New World. In today’s money, that much gold would be worth nearly $4 billion, and the silver would be worth over $7 billion.

Did silver cause inflation?

Economists mostly argue that the Great Inflation in renaissance Europe was caused by an inflow of silver. Historians counter that it was caused by population growth.

How did Silver impact Europe?

As supplies of silver decreased in Europe, Europeans had less ability to purchase highly coveted Chinese goods. Merchants were no longer able to sustain the China trade through profits made by selling Chinese goods in the West and were forced to take bullion out of circulation in Europe to buy goods in China.

Where did Spain’s gold go?

The Moscow Gold (Spanish: Oro de Moscú), or alternatively Gold of the Republic (Spanish: Oro de la República), was 510 tonnes of gold, corresponding to 72.6% of the total gold reserves of the Bank of Spain, that were transferred from their original location in Madrid to the Soviet Union a few months after the outbreak

How did Silver cause the rise and fall of the Spanish Empire?

As silver bullion flooded the market, its value dropped and it took more to buy anything. Effect: The Spanish economy declined and at times it was bankrupt.

Why was the influx of American gold and silver?

Why was the influx of American gold and silver into the English economy during the sixteenth century significant? The English developed a huge appetite for tobacco, which stimulated the English economy and bolstered England’s treasury.

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