Question

you and other college students are deciding whether to major in music or engineering. you learn that there is a shortage of engineers, making it easy for engineering graduates to find employment, while there is a glut of musicians for whom finding a job is difficult. as a result, you and many other college students decide to major in engineering. which economic principle does this illustrate? changes in incentives are unlikely to change the decisions people make. specialization leads to economic efficiency. markets tend to move towards equilibrium as individuals respond to incentives. government intervention can improve efficiency when there is a market failure. individuals do not normally take into account the decisions of other individuals.

Explanation:

Students are responding to the incentive of easier employment for engineers (and harder employment for musicians) by choosing to major in engineering. This shows that markets adjust as individuals change their decisions based on these incentives, moving toward a balance between the supply of engineers and labor demand.

Answer:

Markets tend to move towards equilibrium as individuals respond to incentives.