A critical assumption in the model of demand and supply is the independence of demand and supply curves.If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

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Supplier-induced demand occurs when changes in the supply of a product or service affect the demand for that product or service. This can occur when suppliers engage in advertising or promotion that influences the demand for their product or service, or when suppliers limit the supply of a product or service, leading to increased demand. Such phenomena suggest that the demand curve is not independent of the supply curve.

A Critical Assumption in the Model of Demand and Supply