The Figure Below Shows Two Lorenz Curves,Y and Z

question 75

Multiple Choice

The figure below shows two Lorenz curves,Y and Z. Figure 19.1
- In Figure 19.1,which of the following could occur in the short run given the introduction of a regressive income tax?

• A)The Lorenz curve OZB would shift to OYB.
• B)The Lorenz curve OYB would coincide with the line OXB.
• C)The Lorenz curve OZB would coincide with the line OXB.
• D)The Lorenz curve OYB would coincide with the horizontal axis.
• E)The Lorenz curve would shift from OYB to OZB.

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