The graph shows the Lorenz curve for income Cumulative perce

The graph shows the Lorenz curve for income Cumulative percentage of income Draw a point that shows the cumulative percentage of income eaned by the poorest 40 percent of households Line of equality income were destributed equally across all the households, the Lorenz curve O A. above the Ine of equality O B. along the line of equality O C. along they-xis O D. along the x-axis ncome Cumulative pencentage of households Draw only the objects specified in the question Cick the graph, choose a tool in the palette and tollow the iestructions to cneate your graph

Solution

It is a point on green line or income line and the point is such that cumulative %of HHs is 40%. Thus X=40 and cumulative income is approx. 12%. Thus mark a point where %of HH=40 and %of income=12

If there is perfect equalitg then lorenz curve will itself be line of equality and thus middle diagonal line itself becomes lorenz curve.