Given the Data in the Table Below, Draw the Lorenz

question 105

Essay

Given the data in the table below, draw the Lorenz curve before and after an income tax. Is this tax progressive or regressive?

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Definitions:

Demand

The total amount of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Complementary Goods

Products or services that are used together, where the use of one increases the value of the other.

Substitute Products

Goods or services that can be used in place of each other; when the price of one increases, demand for the substitute is likely to increase.

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