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In gold exchange system, if you happen to have too many chickens in a season, and if everyone try to sell at the same time, there would be too many chickens chasing too little gold. Would this cause gold inflation or gold deflation? And why? Thank you

Cooper says in his Origin of Crisis, "when the demand for a particular product goes up, so does its price, which is then followed by an increase in supply." Does supply really increase? Or did he just confuse the term 'quantify supplied' with 'supply'?