Question

7.

In a study about income distribution, it was found that the Lorenz curves for the distributions of

incomes of college teachers and of lawyers are described by these functions:

f(x)=

13

14

g(x)=

14

=²+x, respectively.

a) Compute the Gini coefficient (or coefficient of inequality) for both.

b) Which has the more equitable income distribution?

Question image 1