Question

what is line of equal distribution

Answer 1

A perfectly equal income distribution would be one in which every person has the same income. In this case, the bottom N% of society would always have N% of the income. This can be depicted by the straight line y = x; called the "line of perfect equality." ... This curve is called the "line of perfect inequality."

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Answer 2

The line of equal distribution is shown with help of a Lorenz curve. The curve helps in determining the distribution of wealth in the households.

Explanation:

• The Lorenz curve was developed by Max O. Lorenz for showing imbalance in the distribution of wealth. It is shown on a graph with with the total income of the houses and the percentage of income that is there with them
• The curve helps in determining any form of deviation in the income levels form the total income level from the various segments of population. The different segments are divided in equal ratios in different areas and their distribution of wealth is the same then it refers to uniformity in distribution
• It is also referred to a line of 'perfect inequality' and the Gini coefficient helps with the expressing the inequality of income in numerically.  It gives information on the level of deviation in the distribution of income.

To know more about income distribution

What is equitable distribution of income?

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