Answer each of the following questions based on this scenario:

A decrease in the supply of in building materials (shortage) means that construction companies cannot get enough materials to complete all their projects. The owners of construction companies in Fiction Town have a choice between these two options:

*To lay off (temporarily fire) 10% of their least experienced workers.
*To reduce the hours of all employees by 5 hours a week, meaning they will be paid for 5 fewer hours of work.


1)What happens to the average income of people who are employed as construction workers?
2)The owners of the companies make profit from the payments made on their construction projects. What happens to the income of the owners?
3)Assume that construction workers are counted as part of the average income in all of Fiction Town. What happens to the average income of people there? Why?