A certain country's income distribution is described by the function
Sketch the Lorentz curve for this function. Compute
and
and interpret your results.
A) 
;
The lowest 10 percent of the people receive 1.5 percent of the total income.
The lowest 30 percent of the people receive 10.1 percent of the total income.
B) 
;
The lowest 10 percent of the people receive 1.5 percent of the total income.
The lowest 30 percent of the people receive 10.1 percent of the total income.
C) 
;
The lowest 30 percent of the people receive 1.5 percent of the total income.
The lowest 10 percent of the people receive 10.1 percent of the total income.
Correct Answer:
Verified
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