The market demand and supply functions for imported high fashion ladies shoes in canada are estimated as follows:

P=150-0.00005Q

p=50+0.0002q

a) Determine the equilibrium market price (P) and qty exchanged annually of shoes and sketch the demand supply diagram showing the equilibrium values. what is the total revenue accruing to shoe importers.

b) Suppose that in response to complaints by domestic shoe manufacturers the government considers the imposition of a tariff (excise tax) of $20 per pair on the importation of shoes. Determine the new equilibrium price and qty exchanged if this tarrif is applied. what will the net revenue to the government from the tarriff.