Developed by American Economist Max O Lorenz in 1905.
Graphical representation of the wealth distribution in a nation, aka how much inequality there is.
Concavity indicates inequality (only concaves upward, f''(x) > 0). The more it concaves and differs from the linear line of y = x, the worse the inequality is.
To interpret the graph:
The x-axis represents each individual, with the poorest person as #1 placed on the most left and the richest person as the last one placed on the most right.
The y-axis represents people's combined wealth, in dollars.
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