The condition in which market supply matches market demand is called 

 The correct answer is Equilibrium.​​

Key Points

• In equilibrium, the aggregate quantity that all firms wish to sell equals the quantity that all the consumers in the market wish to buy.
• Both the consumers' and firms' objectives are compatible in the market equilibrium.
• The price at which equilibrium is reached is called the equilibrium price and the quantity bought and sold at this price is called equilibrium quantity.
• When the market supply is greater than market demand, we say that there is an excess supply in the market at that price.
• When market demand exceeds market supply at a price, it is said that excess demand exists in the market at that price.
• Equilibrium in a perfectly competitive market can be defined alternatively as zero excess demand-zero excess supply situation
• Whenever market supply is not equal to market demand, and hence the market is not in equilibrium, there will be a tendency for the price to change.