Answer:
a) Increased competition acts as a spur to greater efficiency, leading to lower costs and prices for consumers.
b) In some markets, such as airlines and telecoms, deregulation has enabled an increased number of firms, allowing lower prices for consumers. This is particularly noticeable with low-cost airlines and falling prices of telephone calls.
c) Government regulation often involves excessive costs of bureaucracy.
Deregulation allows consumers greater choices
The scenario demonstrates the phenomenon cocktail party effect. This is where a person can focus on a thing with the use of his or her auditory senses even when the person is on another stimuli. To simplify, it is where a person can still focus on the person he or she is talking to despite with the noisy background. This is what Lauren's is demonstrating as she can focus on the passenger even if there are multiple announcements.