▁was ▁developed ▁by ▁Max ▁O . ▁Lor enz ▁in ▁ 1 9 0 5 ▁for ▁representing ▁inequality ▁of ▁the ▁wealth ▁distribution . ▁ ▁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 ▁rig or ously ▁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 ▁pl otted ▁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 ▁econom ists ▁consider ▁it ▁to ▁be ▁a ▁measure ▁of ▁social ▁inequality . ▁ ▁The ▁concept ▁is ▁useful ▁in ▁describing ▁inequality ▁among ▁the ▁size ▁of ▁individuals ▁in ▁e col ogy ▁and ▁in ▁studies ▁of ▁b iod iversity , ▁where ▁the ▁cum ulative ▁proportion ▁of ▁species ▁is ▁pl otted ▁against ▁the ▁cum ulative ▁proportion ▁of ▁individuals . ▁It ▁is ▁also ▁useful ▁in ▁business ▁model ing : ▁e . g ., ▁in ▁consumer ▁fin ance , ▁to ▁measure ▁the ▁actual ▁percentage ▁y % ▁of ▁del in qu encies ▁att rib utable ▁to ▁the ▁x % ▁of ▁people ▁with ▁worst ▁risk ▁scores . ▁ ▁Ex plan ation ▁ ▁Data ▁from ▁ 2 0 0 5 . ▁Point s ▁on ▁the ▁Lor enz