Derive a lorenz curve for loserville

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Reference no: EM131699436

1. Suppose that the economy of Loserville has the following distribution of income:

first quintile               5% of aggregate income

second quintile           5% of aggregate income

third quintile              10% of aggregate income

fourth quintile            20% of aggregate income

fifth quintile               60% of aggregate income

a. From the information provided, please derive a Lorenz Curve for Loserville. Show graphically.

b. From the Lorenz Curve you have drawn, find the Gini Coefficient.

Reference no: EM131699436

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