What term describes the market condition where the quantity of a product supplied is equal to the quantity demanded?

The term that describes the market condition where the quantity of a product supplied is equal to the quantity demanded is known as the equilibrium price. At this point, there is no inherent pressure for the price to change because the amount of the product consumers want to buy matches exactly with the amount that producers are willing to sell. This balance ensures stability in the market, leading to efficient allocation of resources.

In contrast, terms such as surplus and shortage refer to imbalances in this equilibrium. A surplus occurs when the quantity supplied exceeds the quantity demanded, leading to excess inventory and typically resulting in price reductions to encourage sales. On the other hand, a shortage happens when demand surpasses supply, causing consumers to compete for limited goods, which usually drives prices up.

Inflation rate pertains to the overall increase in prices across the economy over a period, which does not specifically relate to the balance of supply and demand for a particular product in the market. Thus, equilibrium price is the most accurate term for the condition of balance between supply and demand.