Aeronautical engineers are a factor of production for airplanes.What will happen in the world market for airplanes when there is a worldwide shortage of aeronautical engineers?

Question

Quizplus · Accepted Answer

When there is a worldwide shortage of aeronautical engineers, the production of airplanes will decrease due to a lack of skilled labor, leading to lower supply. As demand for airplanes remains constant or increases, the shortage of aeronautical engineers may lead to higher costs of production and higher wages to attract the limited number of engineers. These increased costs will be reflected in higher prices for airplanes, which will result in a decrease in the quantity exchanged. Therefore, the best choice is C.

Aeronautical Engineers Are a Factor of Production for Airplanes