1. Workers in a certain occupation will soon require a government issued license to legally practice in that occupation. To get the new license workers will need to study and pass an exam and then pay for a license. Employers who provide this service will need to close their shop unless they employ these licensed employees to serve the public. Based on this information: a. How in the near term will this new development change the Supply of labour in this occupation? Discuss. 2 Marks

b. How in the near term will this new development change the Demand for labour in this occupation? Discuss. 2 Marks

c. Briefly discuss how this development with affect the equilibrium wage rate and the number of workers employed in the occupation. 1 Mark