1. The problem asks whether the statement "Implicit differentiation involves differentiating both sides of an equation with respect to $x$ and then solving for $\frac{dy}{dx}$" is true or false. 2. Implicit differentiation is a technique used when you have an equation involving both $x$ and $y$, and $y$ is implicitly defined as a function of $x$. 3. The process involves differentiating both sides of the equation with respect to $x$, treating $y$ as a function of $x$ (so when differentiating terms involving $y$, you apply the chain rule and multiply by $\frac{dy}{dx}$). 4. After differentiating, you solve the resulting equation for $\frac{dy}{dx}$ to find the derivative of $y$ with respect to $x$. 5. Therefore, the statement is true.