In an attempt to induce citizens to conserve energy, the government enacted regulations requiring all air conditioners to be more efficient in their use of electricity

In an attempt to induce citizens to conserve energy, the government enacted regulations requiring all air conditioners to be more efficient in their use of electricity. After this regulation was implemented, government officials were the surprised to discover that people used even more electricity than before. Using the concept of price elasticity, which of the following statements explains how this could happen?

A. The DEMAND for cold air must have increased as the "price" of another degree of cooler air decreased with a more efficient air conditioner.
B. ALL Individuals must have responded to the change in the "price" to produce cold air by lowering their thermostats significantly.
C. The DEMAND for cold air must be elastic and the "price" for another degree of cooler air decreased.
D. The DEMAND for cold air must be inelastic and the "price" for another degree of cooler air decreased.
E. The increase in the quantity demanded for cold air must have overpowered the efficiency gains from the newer air conditioners.