Which term describes the state in which the amount being sold is equal to the amount being bought?

The concept of market equilibrium refers to the state in which the quantity of goods or services supplied is equal to the quantity demanded. This balance ensures that there is no surplus or shortage in the market; producers can sell all the goods they supply, and consumers can purchase all the goods they desire at the prevailing price. Market equilibrium is a fundamental concept in economics because it represents a point of stability in the market, where market forces are in balance.

Market competition involves the dynamics between different sellers in a marketplace, focusing on how their interactions influence prices and consumer choices, but it does not directly address the balance between supply and demand. A market economy refers to an economic system in which decisions regarding investment, production, and distribution are driven by the supply and demand for goods and services, rather than being centrally planned, but it does not specifically describe the condition of supply equaling demand. Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, indicating a lack of supply rather than a balance. Therefore, market equilibrium is the correct answer as it precisely describes a state of balance where what is bought equals what is sold.