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. What is NOT an effect of this subsidy?

A) an increase in price and an increase in quantity produced
B) an increase in supply
C) an increase in marginal cost
D) inefficient overproduction