Answer:
increases the same amount with tariffs and equivalent quotas.
Explanation:
In Economics, a surplus refer to the amount by which the quantity supplied of a good exceeds the quantity demanded of the same good.
A producer surplus is the amount by which a buyer is willing to pay for a particular good minus the cost of producing the same good.
On the other hand, a consumer surplus is the amount by which a buyer is willing to pay for a particular good minus the amount the buyer actually pays for it.
In the case of a small country, a producer surplus increases (raises) the same amount (an amount a buyer is willing to pay for a good minus the cost of producing the good) with tariffs and equivalent quotas.
A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.
Generally, tariffs can reduce both the volume of exports and imports in a country. In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.
