<P> In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth . It was developed by Max O. Lorenz in 1905 for representing inequality of the wealth distribution . </P> <P> The curve is a graph showing the proportion of overall income or wealth assumed by the bottom x% of the people, although this is not rigorously true for a finite population (see below). It is often used to represent income distribution, where it shows for the bottom x% of households, what percentage (y%) of the total income they have . The percentage of households is plotted on the x-axis, the percentage of income on the y - axis . It can also be used to show distribution of assets . In such use, many economists consider it to be a measure of social inequality . </P>

What does the lorenz curve illustrate about the economy