Final answer:
Allocative inefficiency, caused by excess demand and insufficient supply, leads to wasteful resource allocation and hinders meeting societal needs efficiently.
Explanation:
Allocative inefficiency is also wasteful because it refers to a situation where resources are not allocated in a way that matches the desires of the society. When there is too much demand and not enough supply, it leads to inefficiency and wastefulness in resource utilization, hampering the economy's ability to meet the people's needs.
Learn more about Economic efficiency here:
https://brainly.com/question/41294635
