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# The public often protests when an unregulated service industry is foun

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Retired Moderator
Joined: 23 Oct 2011
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The public often protests when an unregulated service industry is foun  [#permalink]

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Updated on: 30 Jun 2019, 23:31
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15% (low)

Question Stats:

73% (01:17) correct 27% (01:35) wrong based on 582 sessions

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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

Originally posted by GetThisDone on 28 Apr 2012, 19:58.
Last edited by Bunuel on 30 Jun 2019, 23:31, edited 1 time in total.
Renamed the topic and edited the question.
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Joined: 03 Dec 2012
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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05 Nov 2013, 04:35
1
Answer is D. Thanks to all the cranky people in the world :D
Veritas Prep GMAT Instructor
Joined: 23 Oct 2013
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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20 Nov 2013, 19:01
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The logic flow chart for this question is as follows:

Public complains about unregulated industry corruption --> Industry becomes regulated --> Costs increase as a result of regulation --> 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.

I hope this helps!!!
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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26 Jul 2014, 00:23
GetThisDone wrote:
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

Only D and E are close.
E) cannot be correct as as stimulus
Fewer companies survive in a regulated market, leading to decreased competition and higher prices.
So Survival of fewer companies lead to higher prices.
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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04 Mar 2016, 19:37
GetThisDone wrote:
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

this is an inference type of questions...the answer choice must be 100% true based on the information given in the argument.
A - should not - too strong language..
B - should not protest - again too strong language
C - ONLY again, too strong...
D - yes, this can be inferred from the argument. People protest, and thus because of the regulation, costs are higher and people are not satisfied.
E - always leads - again, way too strong...
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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01 Apr 2017, 09:26
Argument is saying if people find industry unregulated then they say it is corrupt. However, on making those industries regulated pricing increasing and then people come and say it is very costly. Why the heck they are doing this to us??

1.Service industries should not be regulated. : Is it?? Then they will come and say please man do something.
2.The public should not protest unregulated services. As if they are going to hear us. Incorrect
3.Only unregulated services are subject to public protest. Too extreme.
4.The public is sometimes the cause of its own complaints. Yes, here we come. First saying make it regulated and when we do they say don;t do it please.
5.Decreased competition always leads to increased prices. So, what?? We are already given this.
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Re: The public often protests when an unregulated service industry is foun  [#permalink]

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09 Apr 2019, 03:29
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: The public often protests when an unregulated service industry is foun   [#permalink] 09 Apr 2019, 03:29
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