In the case of nonhomogeneous goods, the imposition of an import tariff

Question

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Nonhomogeneous goods have different qualities, features, and characteristics. When an import tariff is imposed on such goods, it leads to an increase in the price of the imported goods, without affecting the domestic substitute. This price increase leads to a transfer of surplus from consumers to producers in the domestic market, resulting in a welfare loss to the society as a whole. Thus, the imposition of an import tariff produces a transfer from consumers to producers in the domestic market.

In the Case of Nonhomogeneous Goods, the Imposition of an Import