If an analyst were confident that all factors that shift the supply curve were constant when observing changing prices and quantities traded:
A) the analyst would be confident that the demand curve had been identified.
B) neither the supply nor the demand curve would have been identified.
C) the analyst should gather more data to find shifts in both curves.
D) both the supply and demand curves would have been identified.
E) the analyst would be confident that the supply curve had been identified.

Question

Quizplus · Accepted Answer

If the analyst is confident that all factors that shift the supply curve are constant, then the changing prices and quantities traded must be the result of movements along the supply curve. Therefore, the analyst would be confident that the supply curve had been identified. The demand curve, however, may still be unknown, as changes in quantity demanded may also affect price.

If an Analyst Were Confident That All Factors That Shift