Final answer:
The term described in the question is actually an ad valorem tariff, not a specific tariff. Specific tariffs are fixed fees per unit, while ad valorem tariffs are percentage-based. Changes in tariffs affect equilibrium prices and quantities in markets.
Step-by-step explanation:
The description given in the question actually refers to an ad valorem tariff, not a specific tariff. A specific tariff is, in fact, a fixed fee levied on a physical unit of imported goods, regardless of value. In contrast, an ad valorem tariff is a tax levied as a constant percentage of the monetary value of one unit of the imported good, which aligns with the definition erroneously provided in the question. An example from international trade would be how in recent years, large, flat-screen televisions imported to the U.S. from China faced a 5% ad valorem tariff rate. Reduction in such tariffs typically leads to lower consumer prices and potentially increased demand, resulting in higher equilibrium quantities but lower equilibrium prices.