If the Hawaii Supreme Court rules against the Superferry, what is the expected effect on the market for interisland travel?

When the Hawaii Supreme Court rules against the Superferry, it is expected to directly impact the supply of interisland travel. The Superferry would be considered a supplier of interisland travel options. If the court rules against it, the Superferry would no longer be able to operate or provide its services, leading to a reduction in the overall number of available travel options between the islands.

As supply decreases, the market experiences a shift to the left in the supply curve. This decrease in supply typically results in higher prices for the remaining interisland travel options, as fewer seats are available and demand may remain the same or even increase due to the lack of alternatives. Consequently, the overall market dynamics will lead to an upward pressure on prices, reflecting greater scarcity of interisland travel options.

This context helps illustrate why the correct answer reflects a shift in supply rather than demand or price stability. Demand might be influenced indirectly as travelers who depended on the Superferry look for other alternatives, but the immediate and direct consequence of the court ruling is the reduction in supply.