The distribution of income for Inequalia is as follows: If the poverty rate in Inequalia is 25 percent, what is the poverty line in Inequalia?

Question

The distribution of income for Inequalia is as follows:  If the poverty rate in Inequalia is 25 percent, what is the poverty line in Inequalia?

Quizplus · Accepted Answer

The poverty line is the income level below which a family is considered to be living in poverty. To find it, we need to identify the income level at which 25% of the population falls below. Looking at the chart, we can see that at the $10,000 income level, approximately 25% of the population falls below. Therefore, the poverty line in Inequalia is $10,000.

The Distribution of Income for Inequalia Is as Follows