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

Question

Quizplus · Accepted Answer

A severe recession would likely lead to a decrease in demand for cruise ship vacations, which would reduce the demand for cruise ship berths. With a decrease in demand and all else equal, the equilibrium price of cruise ship berths would decrease.