A lorenz curve is a graph for showing the distribution of economic quantities such as wealth and income. It was created for representing inequality of the wealth distribution. This graph explains the application of the lorenz curve. The first point shows that the first 25% of the population makes 5% of national income. As the lorenz curve moves up, it represents other percentages of population and a growing amount of income that they represent.http://content.answers.com/main/content/img/oxford/Oxford_Geography/0198606737.lorenz-curve.1.jpg
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