EconixaECONOMICS FUNDAMENTALS

Interactive simulator

Lorenz Curve and Inequality Simulator

The Lorenz curve plots the cumulative share of income against the cumulative share of households; the 45-degree line is perfect equality. This simulator lets you redistribute income between quintiles and watch the curve bow outward or flatten, with the Gini coefficient (0 = equality, 1 = maximum inequality) updating live. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.

030609012015001020304050Quantity QPrice PDSE (Q*=64, P*=18.0)
Qd = 100 − 2PQs = 10 + 3PEquilibrium price P* = 18.00Equilibrium quantity Q* = 64.00
Reading the market

Equilibrium solves Qd = Qs, so P* = (a − c) ÷ (b + d). Shifting demand changes a; shifting supply changes c. A ceiling only bites when set below P* (creating a shortage); a floor only bites when set above P* (creating a surplus).

How to use it

  1. Move income shares between quintiles.

  2. Watch the Lorenz curve bow or flatten.

  3. Read the Gini coefficient and interpret its movement.

What you will learn

  • Read a Lorenz curve.
  • Interpret the Gini coefficient.
  • Explain how transfers affect measured inequality.

Model notes

Quintile shares are user-set, not from real data. The Gini shown is the standard area-based approximation. Pre-tax vs post-tax distinctions are noted, not modeled.