The Figure Given Below Shows the Lorenz Curves of Two

question 69

Multiple Choice

The figure given below shows the Lorenz curves of two countries (Country A and Country B) .Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)

-_____ are the primary population group with poverty-level incomes in the USA.

• A)Single-income households
• B)Households headed by males
• C)College graduates
• D)People who do not have high school education
• E)Retired individuals

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Demand Increase

A situation where the quantity of a product or service that consumers are willing and able to buy at a given price rises.

Price Elasticity

The sensitivity measure of demand for a good relative to its price changes.

Demand Curve

It illustrates the relationship between the price of a good or service and the quantity demanded for a given period, assuming all other factors are constant (ceteris paribus).