There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and c gets $100. How much income of the total income does the poorest 1/3 receive? How much does the bottom 2/3 receive? Graph the Lorenz Curve. Calculate area B. Calculate area A. What is the gini coefficient? Use a graph like the one below to draw a picture of the Lorenz curve and help in calculating areas A and B. Sincome 100% - 1- -ipopulation 100%-1

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
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There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and e gets
$100. How much income of the total income does the poorest 1/3 receive? How much does the
bottom 2/3 receive? Graph the Lorenz Curve. Calculate area B. Caleulate area A. What is the
gini coefficient? Use a graph like the one below to draw a picture of the Lorenz curve and help in
calculating areas A and B.
%income
100% = 1-
%population
100% - 1
Transcribed Image Text:There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and e gets $100. How much income of the total income does the poorest 1/3 receive? How much does the bottom 2/3 receive? Graph the Lorenz Curve. Calculate area B. Caleulate area A. What is the gini coefficient? Use a graph like the one below to draw a picture of the Lorenz curve and help in calculating areas A and B. %income 100% = 1- %population 100% - 1
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