The Lorenz curve is a graphical representation used to analyze the distribution of income or wealth within a population. Constructing a Lorenz curve involves a series of steps. First, the data must be sorted based on income or wealth levels from lowest to highest. Next, the cumulative percentage of the total income or wealth is calculated for each corresponding group. A graph is then created, with the cumulative percentage on the y-axis and the cumulative percentage of the population on the x-axis. Finally, a line of equality is drawn to represent perfect equality, and the Lorenz curve is plotted by connecting the cumulative percentage points on the graph. The resulting curve visually illustrates income or wealth inequality within a society.