From November 2007 to March 2008, the price of gold increased from $865 an ounce to over $1,000 per ounce. The increase in price had little to do with the increase in demand from the jewelry industry but significant increase from investors who looked at gold as safe heaven to invest in.

a. Was the increase in the price of gold due to a shift in the demand curve for gold, a shift in the supply curve for gold, or both?

b. Did the increase in the price of gold affect the supply curve for gold jewelry? If so, how?