Final answer:
Supplier-induced demand is efficient and desirable when it helps correct a market operating below equilibrium price leading to an optimal amount of goods and services produced.
Step-by-step explanation:
Supplier-induced demand becomes efficient and desirable when the market is operating below equilibrium price, creating a situation of excess demand or a shortage. In such scenarios, higher profits motivate additional suppliers to enter the market or existing suppliers to increase their production, leading to an equilibrium where the optimal amount of goods and services is produced and consumed. This adjustment towards equilibrium can enhance the overall efficiency of the market, ensuring scarce resources are utilized to their full potential and gains from trade are maximized, ultimately benefiting consumers, suppliers, and society at large.