▁curve ▁represent ▁statements ▁such ▁as , ▁" the ▁bottom ▁ 2 0 % ▁of ▁all ▁households ▁have ▁ 1 0 % ▁of ▁the ▁total ▁income ." ▁ ▁A ▁perfectly ▁equal ▁income ▁distribution ▁would ▁be ▁one ▁in ▁which ▁every ▁person ▁has ▁the ▁same ▁income . ▁ ▁In ▁this ▁case , ▁the ▁bottom ▁N % ▁of ▁society ▁would ▁always ▁have ▁N % ▁of ▁the ▁income . ▁ ▁This ▁can ▁be ▁dep icted ▁by ▁the ▁straight ▁line ▁y ▁= ▁x ; ▁called ▁the ▁" line ▁of ▁perfect ▁equality ." ▁ ▁By ▁contrast , ▁a ▁perfectly ▁une qual ▁distribution ▁would ▁be ▁one ▁in ▁which ▁one ▁person ▁has ▁all ▁the ▁income ▁and ▁everyone ▁else ▁has ▁none . ▁ ▁In ▁that ▁case , ▁the ▁curve ▁would ▁be ▁at ▁y ▁= ▁ 0 % ▁for ▁all ▁x ▁< ▁ 1 0 0 %, ▁and ▁y ▁= ▁ 1 0 0 % ▁when ▁x ▁= ▁ 1 0 0 %. ▁This ▁curve ▁is ▁called ▁the ▁" line ▁of ▁perfect ▁inequality ." ▁ ▁The ▁G ini ▁coefficient ▁is ▁the ▁ratio ▁of ▁the ▁area ▁between ▁the ▁line ▁of ▁perfect ▁equality ▁and ▁the ▁observed ▁Lor enz ▁curve ▁to ▁the ▁area ▁between ▁the ▁line ▁of ▁perfect ▁equality ▁and ▁the ▁line ▁of ▁perfect ▁inequality . ▁The ▁higher ▁the ▁coefficient , ▁the ▁more ▁une qual ▁the ▁distribution ▁is . ▁In ▁the ▁diagram ▁on ▁the ▁right , ▁this ▁is ▁given ▁by ▁the ▁ratio ▁A /( A + B ), ▁where ▁A ▁and ▁B ▁are ▁the ▁areas ▁of ▁regions ▁as ▁marked ▁in ▁the ▁diagram . ▁ ▁Definition ▁and ▁calculation