In an effort to make the distribution of income more nearly equal, the government of a country
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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 y = 0.998x2.6 for one year to y = 0.57x2 + 0.43x for the next year. Find the Gini coefficient of income for each year and determine whether the distribution of income is more or less equitable after the tax law is passed. Interpret the result.
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Mathematical Applications For The Management, Life And Social Sciences
ISBN: 9781337625340
12th Edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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