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4. Consider the following table: Population Share Income Share 0-20% 21-40% 41-60% 61-80% 6% 11% 16% 21% 46% 81-100% a. Draw a Lorenz curve
4. Consider the following table: Population Share Income Share 0-20% 21-40% 41-60% 61-80% 6% 11% 16% 21% 46% 81-100% a. Draw a Lorenz curve for this economy. b. For every quintile (except the top one), suppose the income share increases by 4%. What happens to the top quintile share as a result? Draw the new Lorenz curve on the same graph. What can you conclude about inequality change in this economy? c. Compute the Gini Coefficients for these two scenarios.
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