Please answer all if possible with explanations. If not, answering a) would be greatly appreciated. Thank you!

1. (a) (6 points) - Draw Lorenz curves for 2 income distributions. Can you say which distribution is more unequal based on the figures? Income Distribution in Twilightia: ($300, $400, $500, $600); (60, 30, 120, 30) Income Distribution in Avataria: ($400, $1,000, $1,010, $1,700); (40, 20, 80, 20) Note that the first set of numbers represents the various incomes; whereas the second set of numbers represents the number of people earning each of these incomes. For example, in Twilightia there are 60 people with the income of $300, 30 people with the income of $400, and so on. (b) (2 points) Assume that 20 people with an income of $600 have left Twilightia. How does this change affect Lorenz curve and Gini coefficient in Twilightia? (You do need to draw or calculate anything, just explain). (c) (2 points) Assume that the government of Avataria puts a tax on the richest 20 people with an income of $1,700 and gives the collected tax revenue to the poorest 40 people with an income of $400. How does this change affect Lorenz curve and Gini coefficient in Avataria? (You do need to draw or calculate anything, just explain)