The Lorenz curve is used to show inequality in a distribution of income values within an economy. If the Lorenz curve lies below the line of equality, the distribution of income will become more unequal. The image above is an example of a Lorenz curve. The green line represents the line of perfect equality, red line represents the Lorenz curve, and the blue line represents the line of perfect inequality. Note that the Lorenz curve is below the line of equality.
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