The identification problem refers to the difficulties that a researcher encounters when trying to
A) determine which independent variables influence quantity demanded.
B) find accurate data on the price of a commodity and on the quantity demanded of a commodity.
C) estimate a demand function from data on commodity price and quantity demanded.
D) measure the impact of extraneous variables on experimental market data.

Question

Quizplus · Accepted Answer

The identification problem specifically relates to the challenge of estimating a demand function (or any economic relationship) accurately from observed data, such as commodity prices and quantities demanded. This involves distinguishing the true causal relationships from correlations caused by other factors.

The Identification Problem Refers to the Difficulties That a Researcher