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A circumstance where the amount produced and consumed of a public good is adjusted to the price that individuals are able and willing to pay for that specific good. Substantial adjustments need to be made between the supplydemand and cost of the public good before the point where a balance or equilibrium is reached where all these elements are in agreement. The end result is that the public good or public need is met by balancing the price to one that private individuals can pay. This is known as lindahl equilibrium.

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