Critical Reasoning

Governments have only one response to public criticism of socially necessary services: regulation of the activity of providing those services. But governments inevitably make the activity more expensive by regulating it, and that is particularly troublesome in these times of strained financial resources. However, since public criticism of child-care services has undermined all confidence in such services, and since such services are socially necessary, the government is certain to respond.
Which one of the following statements can be inferred from the passage?
(A) The quality of child care will improve.
(B) The cost of providing child-care services will increase.
(C) The government will use funding to foster advances in child care.
(D) If public criticism of policy is strongly voiced, the government is certain to respond.
(E) If child-care services are not regulated, the cost of providing child care will not increase.

OA is B

This type of formal logic is typical of the LSAT rather than GMAT, but here goes. The argument is constructed in a series of statements, each of which can be reduced to If "Cause" --> "result".

sentence 1: if public criticism --> government regulates.

sentence 2: if regulate --> activity is more expensive.

Sentence 3: specific example: child care services have been criticized, so the government will respond.
The general sentences before dictate the continuation of the reasoning of the specific example of child care:

child care criticized --> government will regulate --> child care will become more expensive (which is what B says).