After a Cruise Ship Is Hijacked at Sea by Terrorists

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