Final answer:
Efficient demand occurs when consumers buy all products in the marketplace, signifying equilibrium where the optimal amount of goods and services is produced and consumed, including consumer surplus, producer surplus, and social surplus.
Step-by-step explanation:
The type of demand created when consumers adequately buy all products put into the marketplace is known as efficient demand. In a situation where the market has reached an efficient state, it implies that the optimal amount of each good and service is produced and consumed. This achievement is characterized by the economy utilizing its scarce resources to gain maximum benefit and all possible gains from trade have been realized, manifesting as consumer surplus, producer surplus, and social surplus.
In the context of the demand and supply model, efficiency is attained when market equilibrium is established—where demand equals supply, resulting in an equilibrium price and quantity. For instance, in a market for tablet computers, if the equilibrium price is $80 and the equilibrium quantity is 28 million, consumers and producers reach a point where supply matches demand without excess surplus or shortage. Consumers benefit since they pay a price that matches the value they derive from the product, often reflected in the demand curve above the equilibrium point where some consumers would have been willing to pay more than the equilibrium price.
The dynamics of demand and supply dictate that when consumers demand more goods than are available, prices rise. This price increase then prompts an inflow of new suppliers to the market, aiming to profit from the increased price level, eventually resulting in a quantity supplied that meets the heightened demand level—once again moving towards market equilibrium.