From November 2010 to March 2011 the price of gold increased from $1,200 per ounce to over $1,800 per ounce. Newspaper articles during this period said there was little increased demand from the jewelry industry but significantly more demand from investors who were purchasing gold because of the falling dollar.
a. Was this price increase due to a shift in the demand curve for gold, a shift in the supply curve for gold, or both?
b. Did this price increase affect the supply curve for gold jewelry? If so, how?