Economics Supply And Demand Questions
Economic efficiency refers to the optimal allocation of resources in a way that maximizes overall societal welfare. It occurs when the production and distribution of goods and services are achieved at the lowest possible cost, while also meeting consumer demand. In an economically efficient system, resources are allocated in a manner that minimizes waste and maximizes the satisfaction of consumer preferences. This concept is often measured by analyzing the relationship between supply and demand, as well as the equilibrium price and quantity in a market.