The public often protests when an unregulated service industry is foun

OFFICIAL EXPLANATION

The passage describes how public complaints about one issue (corruption in unregulated service industries) can have consequences (increased costs) that lead to new public complaints. The correct answer will tie together this information without assuming too much.

(A) This answer choice is too extreme. While regulation does often result in increased costs, which consumers don't like, the regulation presumably halts the corruption, which consumers also don't like.

(B) This answer choice is a judgment call based on the idea that the increased costs are less desirable than the corruption. The passage does not provide information to support this claim.

(C) The passage doesn't address what types of services are subject to public protest. In addition, the word "only" is extreme.

(D) CORRECT. This answer summarizes what the passage describes – a cycle of public discontent. Notice that the correct “inference” or “conclusion” here isn't much more than a summary of the premises in the passage.

(E) In the passage, the author says "regulation often leads to increased costs for the consumer" due to decreased competition. Always is not the same as often. This answer choice is too extreme.