2. A nearby town has a population of 30,000 people. All people in this town make exactly the same income of 80 thousand CAD per year. Imagine repeating the same steps as in Problem 1 for this town. (a) What would the list of all yearly incomes (in thousands of CAD) look like? (You may use ellipses, "...") (b) Now fill the chart below with decimal values between 0 and 1; round to the nearest 0.01. Lowest-earning fraction r 0.0 0.2 0.4 0.6 0.8 1.0 Fraction of income made by lowest-earning fraction (c) Now plot the 5 points from the table and then sketch the full Lorenz curve, which is the full graph of y = L(x) for all z between 0 and 1. 1.0 0.8 y = L(x) 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0 3. On the grid below, plot 3 different Lorenz curves for three different imaginary towns described below. A. Moominvalley: All income is split evenly between all members of the town. B. Gotham: Everyone in the town makes some money, but the income is not equally distributed. The income each person makes depends on the type of work they do. C. Oligotham: Very few people (much less than 1%) in the town make all the money. No one else makes any money. Please label the three curves clearly as A, B, C. 1.0 7 0.8 y = L(I) 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0 4. The Gini Coefficient: The Gini coefficient is a measure of inequality. It is equal to twice the area between the line y = x and the Lorenz curve y = L(x). (Here, x and y satisfy 0