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 of inputs producing a tee shirt is now $8.80

b.The value of inputs producing a tee shirt is now $12.80

c.The value of the inputs producing a tee shirt is now $10.10

d.The value of inputs producing a tee shirt remains unchanged