The market price of a Tee Shirt sold in a retail shop in Mauritius is $20. It takes 2 hours to product this tee shirt where labour cost is $2 per hour and the other inputs, all imported cost the firm $8. The Mauritius government decides to impose a uniform tariff of 10% on all imports (including identical tee shirts). Which of the following explains the effect of this policy?

Select one:

a. The value added of this tee shirt increases from $10 to $12

b. The value added of this tee shirt remains unchanged at $10

c. The value added of this Tee shirt increases by $1.20

d. The value added of this tee shirt cannot be determined