Question

The public often protests when an unregulated service industry is found to be corrupt. However, regulation often leads to increased costs for the consumer. Fewer companies survive in a regulated market, leading to decreased competition and higher prices. The public then responds negatively to the increased costs of these services.

The statements above best support which of the following?

• A. Service industries should not be regulated.
• B. The public should not protest unregulated services.
• C. Only unregulated services are subject to public protest.
• D. The public is sometimes the cause of its own complaints.
• E. Decreased competition always leads to increased prices.

Answer 1

The correct option is D The public is sometimes the cause of its own complaints.

Public complains about unregulated industry corruption $\to$ Industry becomes regulated $\to$ Costs increase as a result of regulation $\to$ Public complains about increased costs.

If you look at beginning and end of the flow chart, you can see that the public is causing its own grievances. Thus Answer choice D works great.