Substitution in the construction of houses

With Workers Scarce, More Home Builders Turn to Prefab Construction by: Chris Kirkham Nov 16, 2016 Click here to view the full article on WSJ.com TOPICS: Manufacturing SUMMARY: A persistent shortage of construction workers across the U.S. is prompting some of the nation's largest home builders to experiment with a model they once derided: factory production. CLASSROOM APPLICATION: Students can examine the reasons for factory production of homes : a short supply of skilled construction workers and the introduction of new wired technologies in homes. QUESTIONS:  1. (Advanced) The article notes a shortage of skilled labor in the construction industry. Does a shortage in this sense mean that at the current wages in the industry, the quantity demanded of skilled labor is greater than the quantity supplied? If not, what is the meaning of the term shortage? If quantity demanded of skilled labor is greater than the quantity supplied, do wages adjust? 2. (Advanced) What is the effect of innovations in wired technologies on the home production processes? 3. (Introductory) What are deterrents to construction companies building home modules in factories? Reviewed By: James Dearden, Lehigh University