Adams Corporation manufactures appliances. This year, the government increased the corporate tax rate by 5 percent. Adams responded by raising its prices. Customer demand remained steady, therefore, Adams's before tax profits increased and after-tax profits remained constant. Required: a. Who bears the incidence of the increase in Adams's corporate tax? b. How would your answer change if Adams did not raise prices, resulting in a decline in its after-tax profits and a drop in the market price of its stock? Complete this question by entering your answers in the tabs below. Required A Required B Who bears the incidence of the increase in Adams's corporate tax? Adam Corporation shareholders Adams Corporation Adams Corporation employees Adams Corporation customers +r A Required 8 > Adams Corporation manufactures appliances. This year, the government increased the corporate tax rate by 5 percent. Adams responded by raising its prices. Customer demand remained steady; therefore, Adams's before-tax profits increased and after-tax profits remained constant. Required: a. Who bears the incidence of the increase in Adams's corporate tax? b. How would your answer change if Adams did not raise prices, resulting in a decline in its after-tax profits and a drop in the market price of its stock? Complete this question by entering your answers in the tabs below. Required A Required B How would your answer change if Adams did not raise prices, resulting in a decline in its after-tax profits and a drop in the market price of its stock? Adams Corporation shareholders Adams Corporation Adams Corporation employees Adams Corporation customers