Given the income distribution data, identify the lowest quintile, and depict the income distribution on a Lorenz curve.
Assume you have the following income distribution data for the residents of Disneyland:
| Pluto |
$15,000 |
| Donald Duck |
$20,000 |
| Ticket Taker |
$5,000 |
| Minnie Mouse |
$25,000 |
| Mickey Mouse |
$35,000 |
1. The percentage of Disneyland income held by the lowest quintile is 15%. True or false, and why?
2. Assume that a perfectly equal distribution of income existed in Disneyland. Illustrate which of the current residents would have the same salary he or she has in the present distribution?
3. Now assume that Mickey Mouse becomes a mean spirited authoritarian dictator. His income is $99,996. Each of the other characters receives $1. Describe what this income distribution would look like on a Lorenz curve.