You and other college students are deciding whether to major

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 difficult. As a result you and many other college students decide to major in engineering. What economic principle does this illustrate?

Solution

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

It is so because when there is disequibrium there is increased competition amongst buyers. Price riss and this motivates supply to rise. In this case, individuals are going for engineering as it is paying high rwturns and hence supply of engineers is increasing.