Consider a distribution of income for three people with incomes (1, 2, 3). Verify that the Gini index is 0.22. Draw the

[answerhappygod]

Consider a distribution of income for three people with incomes
(1, 2, 3).
Verify that the Gini index is 0.22. Draw the Lorenz curve. How
would it change if the distribution became (1.5, 1.5, 3)? How would
it change if the distribution became (1, 2, 2, 3)? Consider the
implications for inequality in each case, as compared to the (1, 2,
3) distribution.
Starting from the (1, 2, 3) distribution, consider a
redistribution toward the middle, such that the new distribution is
(0.75, 2.5, 2.75). Do you think inequality is higher or lower?