USA HISTORY

Detailed explanation-1: -It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise.

Detailed explanation-2: -Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases.

Detailed explanation-3: -Supply of goods and services Price is what the producer receives for selling one unit of a good or service. An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.

Detailed explanation-4: -With increased rates of interest, customers tend to sell gold to acquire cash and as such an increased supply of gold leads to reduced rates of the metal. Alternatively, lower interest rates translate to more cash in the hands of customers and as such greater demand of gold and thereby increased price of the metal.