Assume That a New Nuclear Power Plant Wishes to Raise

Assume that a new nuclear power plant wishes to raise consumers' electrical rates to cover the unexpectedly high costs of construction. However, the government regulatory commission refuses to let electrical rates be increased because it says the increase will only worsen the power plant's financial problems. We can conclude that the

A) power plant is arguing that the demand for electricity is elastic, whereas the government is arguing that it is inelastic.
B) power plant should increase its electrical rates if the demand for electricity is elastic.
C) power plant should decrease its electrical rates if the demand for electricity is inelastic.
D) demand for electricity must be unit elastic.
E) power plant is arguing that the demand for electricity is inelastic, whereas the government is arguing that it is elastic.