Monoploy

If a corporation announces that it expects quarterly earnings to increase by 25% and it actually sees an increase of 22%,

what should happen to the price of the corporation's stock if the efficient markets hypothesis holds, everything else held constant?

Suppose there is a high inequality in household income between the highest and the lowest income groups in one country. In response, the government raises the income tax for the highest income group and provides subsidies to the lowest-income group. What

would happen to the Lorenz curve as a result of the government programs? Explain. What will be an ideal response?