e. The richest 20% earn 20% of the income. [Hint it may help to draw the Lorenz curve] ZZIJ' 4' B G =L= = 0.133 2N\"? 2*52*1.2 Note this means that the poorest 80% earn 80% of the income. Thus L(O.8) = 0.8. The Lorenz curve is therefore on the 45degree line at 0.8. This implies that it is always on the 45degree line. It could never be below it, since that would involve the curve getting less steep at some point (ie. it would not always be convex). Thus this is a case of perfect equality, i.e. all incomes are the same: so income differences within every pair of individuals are 0 and so G = 0, and differences between every income and the mean income are 0 and so C = 0