3.4.9 (HL)—Lorenz curve construction

A Lorenz curve plots cumulative population share against cumulative income share; the farther it lies below the equality line, the greater inequality.

Order households from poorest to richest and use cumulative shares; the Gini relates to the area between curve and equality line.

Plot correctly, label axes and interpret a shift.

If the bottom 40% receive 15% of income, the point is (40,15).

Do not plot individual rather than cumulative shares.