what is lindahl equilibrium?explain with the help of diagram
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a concept that proposes that individuals pay the provision of a public good according to their marginal benefits in order to determine the efficient level of provision for public goods. in the equilibrium state, all individuals consume the same quantity of public goods but may face different prices because some people may value a particular goods more than the others. the lindahl equilibrium is the resulting amount paid by an individual for his or her share of the public goods.
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Lindahl equilibrium is a state of equilibrium in a quasi-market for a pure public good. Like a competitive market equilibrium, the supply and demand for the good are balanced, in addition to the cost and revenue to produce the good. Lindahl equilibrium depends on the possibility of implementing an effective Lindahl tax, first proposed by the Swedish economist Erik Lindahl.
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