Question: Please include graphs when required. Over the past decade, cruise ship companies have dramatically increased the number of mega-ships (those that carry 3,000 passengers or

Please include graphs when required.

Over the past decade, cruise ship companies have dramatically increased the number of mega-ships (those that carry 3,000 passengers or more), affecting the supply of cruises. At the same time, the popularity of cruising has increased among consumers, affecting demand.

a)Identify those changes in supply and demand with a diagram showing the shift in the curves.

b)Explain how these two effects can coincide with a decrease in the average price of cruise travel experienced in the past years. Hint: how would the demand and supply have to shift in order to result in a falling equilibrium price?

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