The table below shows the size distribution of income for Fantasyland. a. Compute the cumulative percentage of
Question:
The table below shows the size distribution of income for Fantasyland.
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b. On a scale diagram, with the percentage of households on the vertical axis and the percentage of aggregate income on the horizontal axis, plot the Lorenz curve for Fantasyland.
c. How does the diagram show the extent of income inequality in Fantasyland?
d. Now suppose Fantasyland introduces a system that redistributes income from higher-income households to lower-income households. How would this affect the Lorenz curve?
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a The completed table is shown below Household Percentage of Cumulative Income Rank Aggregate Perc...View the full answer
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Related Book For 
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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