Final answer:
Removing an import tariff leads to a decrease in the equilibrium price and an increase in the quantity of imports, benefiting consumers with lower prices and more choices but challenging domestic producers with increased competition.
Step-by-step explanation:
When an import tariff is removed, the economy experiences a change in the equilibrium price and quantity of imports. Without the tariff, foreign goods can enter the market at a lower price, leading to a decrease in the equilibrium price of the imported good. Consequently, consumers have access to a wider range of products at more competitive prices, which generally increases the equilibrium quantity of imports as consumers switch to the now cheaper foreign goods. Domestic producers, who previously benefited from the tariff as a form of protectionism, may sell less as they face tougher competition from imports, potentially leading to a decline in the producer surplus. Nevertheless, the increased competition can spur efficiency and innovation within domestic industries.