If the supply curve for a commodity shifts while the demand curve does not shift, then the demand identification problem will not be encountered.

Question

Quizplus · Accepted Answer

The demand identification problem arises when both the demand and supply curves shift simultaneously, making it difficult to determine the effect of changes on price and quantity. If only the supply curve shifts, the changes in price and quantity can be attributed solely to supply, avoiding the demand identification problem.

If the Supply Curve for a Commodity Shifts While the Demand