Recall Application 3, "The Supply and Demand for Cruise Ship Berths," to answer the following questions:
-Based on the application, an increase in the supply of cruise ships (all else equal) would cause the equilibrium price of cruise ship berths to:

Question

Quizplus · Accepted Answer

An increase in the supply of cruise ships would shift the supply curve to the right, causing a surplus of cruise ship berths. This would put downward pressure on the equilibrium price, leading to a decrease.