a) Consider a simple economy where 90 percent of citizens report an annual income of $10,000 while the remaining 10 percent report an annual income of $110,000. Please represent the Lorenz Curve and shade the area that is below the 45 degree line and above the Lorenz curve. What could be one reason contributing to this society’s distribution of wealth. b) Suppose every citizen earns the same amount. Please represent the Lorenz Curve. Is this kind of wealth distribution possible?

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