Draw a Lorenz curve diagram representing the cumulative share of income as a function of the...

Draw a Lorenz curve diagram representing the cumulative share of income as a function of the cumulative share of the population from the lowest to the highest individual income level. Explain how economic inequality using the Gini coefficient can be illustrated using this diagram. What would you expect the impact on inequality of the decrease in productivity to be? Illustrate using the Lorenz curve and explain.

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Expert Solution

lorenz curve is a graphical representation of income in the economy. it was developed by Max.O Lorenz in 1905 for representation of wealth distribution.

Rahul Sunny answered 1 year ago

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