The New York Times reports that cruise lines have been slashing prices and cruise sales are up. It says this surge of interest tells us that despite the uncertain economic climate, people clearly need more fun in their lives and view their vacations as valuable and necessary.

1. In deciding whether to take a cruise, would you face a tradeoff?

2. How would you make a rational choice about taking a cruise?

3. What would be the marginal benefit from a cruise? What would be the marginal cost of a cruise?

4. Why would you expect a lower price to increase the number of people who decide to take a cruise?