The Federal Government Pays Airlines to Service Small Cities in the United

The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated. Most subsidies can't exceed $200 per passenger. Without this subsidy, what is true?

A) There would be higher prices and fewer flights.
B) There would be lower prices and fewer flights.
C) There would be an increase in supply.
D) There would be a decrease in demand.