Using income tax revenue to fund the welfare system illustrates the conflict between efficiency and equality

A major criticism of industrial regulation is that:

A. it has been applied to virtually all major U.S. corporations in the post-Second World War period. B. marginal cost pricing has created an underallocation of resources. C. by allowing a fair return price, it gives natural monopolists little incentive to contain costs. D. regulatory commissions have frequently caused natural monopolies to go bankrupt.

Judging from this graph, which of the following happens if supply increases and demand remains unchanged?

a. Price falls and quantity rises.
b. Price falls and quantity becomes indeterminate.
c. Price becomes indeterminate and quantity rises.
d. Price increases and quantity falls.