Income Distribution
How income is divided among population.
Formula
Gini Coefficient = (Area between Lorenz curve and line of equality) ÷ (Total area under line of equality)
Real World
South Africa has one of the world's highest Gini coefficients (around 0.63), meaning a small wealthy elite holds most income, directly limiting mass-market consumer spending for businesses.
Exam Focus
When evaluating market attractiveness, reference income distribution not just average income — a high average can mask extreme inequality.
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