Goose bumps are a vestige from the days when humans were covered with hair.
When it's hot and you need to cool down, little muscles at the base of each hair relax. Your hair becomes relaxed. Your sweat glands pump out body heat in sweat. Your blood vessels get big to take more heat to the skin to get rid of it. When it's cold, the arrector muscle pulls the hair up. The duct to the sweat glands gets small to conserve heat. Our blood vessels also get small to save heat.
Hair standing up doesn't make very good insulation - we don't have enough fur for that. Humans don't have very much hair on their bodies anymore. Millions of years ago, humans probably did. And that hair standing on end helped keep people warmer. Those little muscles we have on the end of each hair still work. They still make goose bumps.
Cold is not the only thing that can cause our hair to stand on end. Fear or anger can cause the same reflex. The same is true for other mammals. You'll notice that on a cat or dog. Their fur gets bigger when they're angry or afraid.
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Goosebumps are small lumps in which you get on your legs and arms. It happens when you're cold. Tiny muscles attached to the hairs flex and make the hairs stick up. This trap in the heat to make you warmer
There are many many many ways to get goosebumps, one of the more common ways is when you are cold. Goosebumps are really tiny muscles in your skin contracting, making the skin bunch up that surround the hair, which result in goosebumps. The body preserves heat this way, which is why the hairs stand up, thus reducing heat loss. :)
Goose bumps, or cutis anserina, occur when a person is extremely cold. The formation of goose bumps causes the body hair to stand up, which helps hold in heat when the subject is cold.