Construction Labor shortage Creates Increasingly Lucrative Career Paths Forbes 8

Question

Construction Labor shortage Creates Increasingly Lucrative Career Paths Forbes 8/5/18

Remodeling spending is at all all time high and expected to continue to climb through 2019.  The construction labor shortage is expected to amplify in the coming years, resulting in even more, better opportunities for young people interested in the trades. Young people who work to develop their skills and become more than a nail-banger, can take advantage of the opportunity.

“If you think it’s bad now,” McCadden said. “Five to ten  years from now it will be awful. It might soon be more lucrative to be a plumber than a doctor. Professional craftsmen are going to be few and far between. Demand has outstripped supply and it’s getting worse.”

Based on this article what is true about the price for construction works (wages)

It is above equilibrium so the invisible hand will push wages higher

It is above equilibrium so the invisible hand will push wages lower

It is below equilibrium so the invisible hand will push wages higher

It is below equilibrium so the invisible hand will push wages lower

Explanation / Answer

As per the article the demand of construction workers or the demand for construction work hours will increase in future and the market (invisible hand) will move towards the equilibrium. This would happen when the market (invisible hand) will push the wages to higher point and while doing this the number of work hours will also increase. Therfore the second last option i.e. it (wages) is below equilibrium so the invisible hand will push the wages higher.

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