Suppose That the Garden Gnome Industry Was in Long-Run Equilibrium

Suppose that the garden gnome industry was in long-run equilibrium as described in Problem 1.On January 1, 1993, the cost of plaster and labor remained at $7 per gnome, gnome molds still cost $1,000, and the interest rate remained at 10%, but the government introduced a tax of $8 on every garden gnome sold.Then the equilibrium price of garden gnomes in 1993 would be

A) $17.
B) $8.
C) $9.20.
D) $15.
E) $23.