Chapter 13.3, Problem 46E

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11th Edition

Ronald J. Harshbarger + 1 other

ISBN: 9781305108042

Textbook Problem

** Income distribution** In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from

To determine

**To calculate:** The Gini coefficient of income for both years and comparison of the distributions of income before and after the law was passed and the interpretation of the result where in an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from

Explanation

**Given information:**

It is provided that the law was passed and the interpretation of the result where in an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from

**Formula used:**

Gini Coefficient:

The Gini coefficient is used to calculate the inequality of income distribution and is given by:

Where

**Calculation:**

The Lorenz curve before the change is:

Consider the formula so to calculate the Gini coefficient for this curve:

Substitute

Solve as:

Sect-13.1 P-1CPSect-13.1 P-2CPSect-13.1 P-1ESect-13.1 P-2ESect-13.1 P-3ESect-13.1 P-4ESect-13.1 P-5ESect-13.1 P-6ESect-13.1 P-7ESect-13.1 P-8E

Sect-13.1 P-9ESect-13.1 P-10ESect-13.1 P-11ESect-13.1 P-12ESect-13.1 P-13ESect-13.1 P-14ESect-13.1 P-15ESect-13.1 P-16ESect-13.1 P-17ESect-13.1 P-18ESect-13.1 P-19ESect-13.1 P-20ESect-13.1 P-21ESect-13.1 P-22ESect-13.1 P-23ESect-13.1 P-24ESect-13.1 P-25ESect-13.1 P-26ESect-13.1 P-27ESect-13.1 P-28ESect-13.1 P-29ESect-13.1 P-30ESect-13.1 P-31ESect-13.1 P-32ESect-13.1 P-33ESect-13.1 P-34ESect-13.1 P-35ESect-13.1 P-36ESect-13.1 P-37ESect-13.1 P-38ESect-13.1 P-39ESect-13.1 P-40ESect-13.2 P-1CPSect-13.2 P-2CPSect-13.2 P-1ESect-13.2 P-2ESect-13.2 P-3ESect-13.2 P-4ESect-13.2 P-5ESect-13.2 P-6ESect-13.2 P-9ESect-13.2 P-10ESect-13.2 P-11ESect-13.2 P-12ESect-13.2 P-7ESect-13.2 P-8ESect-13.2 P-23ESect-13.2 P-24ESect-13.2 P-13ESect-13.2 P-14ESect-13.2 P-15ESect-13.2 P-16ESect-13.2 P-17ESect-13.2 P-18ESect-13.2 P-19ESect-13.2 P-20ESect-13.2 P-21ESect-13.2 P-22ESect-13.2 P-25ESect-13.2 P-26ESect-13.2 P-27ESect-13.2 P-28ESect-13.2 P-29ESect-13.2 P-30ESect-13.2 P-31ESect-13.2 P-32ESect-13.2 P-33ESect-13.2 P-34ESect-13.2 P-35ESect-13.2 P-36ESect-13.2 P-37ESect-13.2 P-38ESect-13.2 P-39ESect-13.2 P-40ESect-13.2 P-41ESect-13.2 P-42ESect-13.2 P-43ESect-13.2 P-44ESect-13.2 P-45ESect-13.2 P-46ESect-13.2 P-47ESect-13.2 P-48ESect-13.2 P-49ESect-13.2 P-50ESect-13.2 P-51ESect-13.2 P-52ESect-13.2 P-53ESect-13.2 P-54ESect-13.2 P-55ESect-13.2 P-56ESect-13.2 P-57ESect-13.2 P-58ESect-13.2 P-59ESect-13.2 P-60ESect-13.2 P-61ESect-13.2 P-62ESect-13.2 P-63ESect-13.2 P-64ESect-13.2 P-65ESect-13.2 P-66ESect-13.2 P-67ESect-13.2 P-68ESect-13.3 P-1CPSect-13.3 P-2CPSect-13.3 P-3CPSect-13.3 P-1ESect-13.3 P-2ESect-13.3 P-3ESect-13.3 P-4ESect-13.3 P-5ESect-13.3 P-6ESect-13.3 P-7ESect-13.3 P-8ESect-13.3 P-9ESect-13.3 P-10ESect-13.3 P-11ESect-13.3 P-12ESect-13.3 P-13ESect-13.3 P-14ESect-13.3 P-15ESect-13.3 P-16ESect-13.3 P-17ESect-13.3 P-18ESect-13.3 P-19ESect-13.3 P-20ESect-13.3 P-21ESect-13.3 P-22ESect-13.3 P-23ESect-13.3 P-24ESect-13.3 P-25ESect-13.3 P-26ESect-13.3 P-27ESect-13.3 P-28ESect-13.3 P-29ESect-13.3 P-30ESect-13.3 P-31ESect-13.3 P-32ESect-13.3 P-33ESect-13.3 P-34ESect-13.3 P-35ESect-13.3 P-36ESect-13.3 P-37ESect-13.3 P-38ESect-13.3 P-39ESect-13.3 P-40ESect-13.3 P-41ESect-13.3 P-42ESect-13.3 P-43ESect-13.3 P-44ESect-13.3 P-45ESect-13.3 P-46ESect-13.3 P-47ESect-13.3 P-48ESect-13.3 P-49ESect-13.3 P-50ESect-13.4 P-1CPSect-13.4 P-2CPSect-13.4 P-3CPSect-13.4 P-1ESect-13.4 P-2ESect-13.4 P-3ESect-13.4 P-4ESect-13.4 P-5ESect-13.4 P-6ESect-13.4 P-7ESect-13.4 P-8ESect-13.4 P-9ESect-13.4 P-10ESect-13.4 P-11ESect-13.4 P-12ESect-13.4 P-13ESect-13.4 P-14ESect-13.4 P-15ESect-13.4 P-16ESect-13.4 P-17ESect-13.4 P-18ESect-13.4 P-19ESect-13.4 P-20ESect-13.4 P-21ESect-13.4 P-22ESect-13.4 P-23ESect-13.4 P-24ESect-13.4 P-25ESect-13.4 P-26ESect-13.4 P-27ESect-13.4 P-28ESect-13.4 P-29ESect-13.4 P-30ESect-13.4 P-31ESect-13.4 P-32ESect-13.4 P-33ESect-13.4 P-34ESect-13.4 P-35ESect-13.4 P-36ESect-13.5 P-1CPSect-13.5 P-2CPSect-13.5 P-3CPSect-13.5 P-4CPSect-13.5 P-5CPSect-13.5 P-6CPSect-13.5 P-1ESect-13.5 P-2ESect-13.5 P-3ESect-13.5 P-4ESect-13.5 P-5ESect-13.5 P-6ESect-13.5 P-7ESect-13.5 P-8ESect-13.5 P-9ESect-13.5 P-10ESect-13.5 P-11ESect-13.5 P-12ESect-13.5 P-13ESect-13.5 P-14ESect-13.5 P-15ESect-13.5 P-16ESect-13.5 P-17ESect-13.5 P-18ESect-13.5 P-19ESect-13.5 P-20ESect-13.5 P-21ESect-13.5 P-22ESect-13.5 P-23ESect-13.5 P-24ESect-13.5 P-25ESect-13.5 P-26ESect-13.5 P-27ESect-13.5 P-28ESect-13.5 P-29ESect-13.5 P-30ESect-13.5 P-31ESect-13.5 P-32ESect-13.5 P-33ESect-13.5 P-34ESect-13.5 P-35ESect-13.5 P-36ESect-13.5 P-37ESect-13.5 P-38ESect-13.5 P-39ESect-13.5 P-40ESect-13.5 P-41ESect-13.5 P-42ESect-13.6 P-1CPSect-13.6 P-2CPSect-13.6 P-1ESect-13.6 P-2ESect-13.6 P-3ESect-13.6 P-4ESect-13.6 P-5ESect-13.6 P-6ESect-13.6 P-7ESect-13.6 P-8ESect-13.6 P-9ESect-13.6 P-10ESect-13.6 P-11ESect-13.6 P-12ESect-13.6 P-13ESect-13.6 P-14ESect-13.6 P-15ESect-13.6 P-16ESect-13.6 P-17ESect-13.6 P-18ESect-13.6 P-19ESect-13.6 P-20ESect-13.6 P-21ESect-13.6 P-22ESect-13.6 P-23ESect-13.6 P-24ESect-13.6 P-25ESect-13.6 P-26ESect-13.6 P-27ESect-13.6 P-28ESect-13.6 P-29ESect-13.6 P-30ESect-13.6 P-31ESect-13.6 P-32ESect-13.6 P-33ESect-13.6 P-34ESect-13.6 P-35ESect-13.6 P-36ESect-13.6 P-37ESect-13.6 P-38ESect-13.7 P-1CPSect-13.7 P-2CPSect-13.7 P-1ESect-13.7 P-2ESect-13.7 P-3ESect-13.7 P-4ESect-13.7 P-5ESect-13.7 P-6ESect-13.7 P-7ESect-13.7 P-8ESect-13.7 P-9ESect-13.7 P-10ESect-13.7 P-11ESect-13.7 P-12ESect-13.7 P-13ESect-13.7 P-14ESect-13.7 P-15ESect-13.7 P-16ESect-13.7 P-17ESect-13.7 P-18ESect-13.7 P-19ESect-13.7 P-20ESect-13.7 P-21ESect-13.7 P-22ESect-13.7 P-23ESect-13.7 P-24ESect-13.7 P-25ESect-13.7 P-26ESect-13.7 P-27ESect-13.7 P-28ESect-13.7 P-29ESect-13.7 P-30ESect-13.7 P-31ESect-13.7 P-32ESect-13.7 P-33ESect-13.7 P-34ESect-13.7 P-35ESect-13.7 P-36ESect-13.7 P-37ESect-13.7 P-38ESect-13.7 P-39ESect-13.7 P-40ESect-13.7 P-41ESect-13.7 P-42ESect-13.7 P-43ESect-13.7 P-44ESect-13.7 P-45ESect-13.7 P-47ESect-13.8 P-1CPSect-13.8 P-2CPSect-13.8 P-3CPSect-13.8 P-1ESect-13.8 P-2ESect-13.8 P-3ESect-13.8 P-4ESect-13.8 P-5ESect-13.8 P-6ESect-13.8 P-7ESect-13.8 P-8ESect-13.8 P-9ESect-13.8 P-10ESect-13.8 P-11ESect-13.8 P-12ESect-13.8 P-13ESect-13.8 P-14ESect-13.8 P-15ESect-13.8 P-16ESect-13.8 P-17ESect-13.8 P-18ESect-13.8 P-19ESect-13.8 P-20ESect-13.8 P-21ESect-13.8 P-22ESect-13.8 P-23ESect-13.8 P-24ESect-13.8 P-25ESect-13.8 P-26ESect-13.8 P-27ESect-13.8 P-28ESect-13.8 P-29ESect-13.8 P-30ESect-13.8 P-31ESect-13.8 P-32ESect-13.8 P-33ESect-13.8 P-34ECh-13 P-1RECh-13 P-2RECh-13 P-3RECh-13 P-4RECh-13 P-5RECh-13 P-6RECh-13 P-7RECh-13 P-8RECh-13 P-9RECh-13 P-10RECh-13 P-11RECh-13 P-12RECh-13 P-13RECh-13 P-14RECh-13 P-15RECh-13 P-16RECh-13 P-17RECh-13 P-18RECh-13 P-19RECh-13 P-20RECh-13 P-21RECh-13 P-22RECh-13 P-23RECh-13 P-24RECh-13 P-25RECh-13 P-26RECh-13 P-27RECh-13 P-28RECh-13 P-29RECh-13 P-30RECh-13 P-31RECh-13 P-32RECh-13 P-33RECh-13 P-34RECh-13 P-35RECh-13 P-36RECh-13 P-37RECh-13 P-38RECh-13 P-39RECh-13 P-40RECh-13 P-41RECh-13 P-42RECh-13 P-43RECh-13 P-44RECh-13 P-45RECh-13 P-46RECh-13 P-47RECh-13 P-48RECh-13 P-49RECh-13 P-50RECh-13 P-51RECh-13 P-53RECh-13 P-54RECh-13 P-55RECh-13 P-1TCh-13 P-2TCh-13 P-3TCh-13 P-4TCh-13 P-5TCh-13 P-6TCh-13 P-7TCh-13 P-8TCh-13 P-9TCh-13 P-10TCh-13 P-11TCh-13 P-12TCh-13 P-13TCh-13 P-14TCh-13 P-15TCh-13 P-16T

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