What was the effect of the Jones Act on prices and quantities for goods sent from the mainland to Hawaii?

The Jones Act, also known as the Merchant Marine Act of 1920, mandates that all goods shipped between U.S. ports must be carried on ships that are built, owned, and operated by U.S. citizens or permanent residents. This law has a significant impact on shipping costs due to the limited number of U.S. flagged vessels and the lack of foreign competition.

As a result, the prices of goods sent from the mainland to Hawaii tend to be higher compared to prices in states with more competitive shipping options. This regulation restricts competition, leading to increased transportation costs, which are then passed on to consumers in the form of higher prices. Moreover, the limited number of vessels can also lead to reduced quantities of goods being shipped, as the capacity to transport these goods is constrained.

Thus, the correct conclusion is that the prices increased, leading to a decrease in the quantities of goods that are sent to Hawaii. This aligns with the observed effects of the Jones Act on the economy of Hawaii, where higher costs and limitations in shipping capacity directly impact the availability of products in the market.