After a Cruise Ship Is Hijacked at Sea by Terrorists

question 89

Multiple Choice

After a cruise ship is hijacked at sea by terrorists, fearful consumers seek to take their vacations on land. At the same time, cruise employees demand and receive higher wages. What is the effect on the market for cruise vacations?

• A) an increase in both the equilibrium price and quantity of cruise vacations
• B) an uncertain impact on the equilibrium price and a decrease in the quantity of cruise vacations purchased
• C) an increase in the equilibrium price and a decrease in the equilibrium quantity of cruise vacations purchased
• D) an increase in the equilibrium price of cruise vacations, but an uncertain effect on the quantity of cruise vacations purchased

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Definitions:

Consent

Voluntary agreement to or permission for something proposed by another.

Tort Of Nuisance

A legal action for causing substantial and unreasonable interference with an individual's use or enjoyment of their property.

Civil Action

A lawsuit brought to court by one individual or entity against another to protect a civil right or to obtain compensation for a civil wrong.

Tort Of Negligence

Refers to a civil wrong that arises from an act or failure to act, resulting in injury or harm, stemming from a breach of duty of care owed to others.