3. Assume all of the following about imported and domestically produced shoes. . They are sold in two separate and perfectly competitive markets. . They are close substitutes. . The demand for both is price elastic. Now assume that a tariff is imposed on imported shoes. (a) Using a correctly labeled graph, show the impact of the tariff on each of the following in the market for imported shoes. (i) Price (ii) Output (b) Using a new correctly labeled graph, show the impact of the tariff on each of the following in the market for domestically produced shoes. (i) Price (ii) Output (c) Given that the demand for imported shoes is price elastic, will expenditures on imported shoes by consumers increase, decrease, or remain the same? How do you know