A speculative bubble may involve which of the following scenarios?

A speculative bubble typically arises in an economic environment where asset prices rise rapidly without any underlying fundamental improvements or demand to support those prices. In this scenario, purchasing land without concrete evidence of planned growth exemplifies the characteristics of speculation. Here, investors are buying with the expectation that prices will continue to rise, driven by the hope or belief that future developments will materialize, rather than based on the current demand or concrete plans.

This option, therefore, reflects a common behavior seen in speculative bubbles, where decisions are made based on speculation and anticipated trends rather than solid, verifiable data. It underscores a risky approach, where investors might ignore critical assessments of actual market conditions or ignore evidence that suggests growth may not materialize as expected.

In contrast, options that involve waiting for actual population growth, assessing market demand carefully, or investing in established properties reflect more prudent investment strategies grounded in analysis and due diligence, which would likely mitigate exposure to the risk associated with speculative bubbles.