Lorenz Curve for Income Distribution

This graph elegantly illustrates a Lorenz curve, a fundamental tool in economics used to represent income or wealth distribution within a population. The straight green diagonal line signifies a state of perfect equality, where every percentage of the population holds an equivalent percentage of the total income. In contrast, the red curve, which bows below the line of equality, depicts the actual distribution. The degree to which this red curve deviates from the green line directly indicates the level of income inequality present. The further it sags, the greater the disparity, making it a clear visual for understanding economic fairness.

lorenz curve - income distribution - economic inequality - equality - economics - wealth distribution