Please explain how you came to your conclusion.

A company imports air conditioners. The global supply is perfectly elastic and in addition there is local production. As a result of an increase in the production costs of local producers:

A. Consumer price will not change and imports will increase. B. The price to the consumer will not change, but the equilibrium will decrease. C. The price to the consumer will not change, domestic production will decrease and imports will not change. D. The price to the consumer will increase and the equilibrium will decrease.