A country has 100 million people of which a certain number are poor. Suppose the incidence of poverty rises. This means that the "Poverty Gap" increases. This is depicted by a change in the area defined by the black lines to the area defined by red lines. Which figure depicts this increase correctly? Income $1.0 -6 Ex $1.0 Income Figure A Population Population E $1.0 $1.0 Income Figure C Population Figure D Population
A country has 100 million people of which a certain number are poor. Suppose the incidence of poverty rises. This means that the "Poverty Gap" increases. This is depicted by a change in the area defined by the black lines to the area defined by red lines. Which figure depicts this increase correctly? Income $1.0 -6 Ex $1.0 Income Figure A Population Population E $1.0 $1.0 Income Figure C Population Figure D Population
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:A country has 100 million people of which a certain number are poor. Suppose the incidence of poverty rises. This means that
the "Poverty Gap" increases. This is depicted by a change in the area defined by the black lines to the area defined by red
lines. Which figure depicts this increase correctly?
$1.0
Income
Income
-6
$1.0
Figure A
Tim
Population
Population
4
$1.0
$1.0
Income
ऋ
Figure C
Population
Figure D
Population
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