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) Briefly discuss how in the near term this new development will change the Supply of labour in this occupation. 

 

 

b) Briefly discuss how in the near term this new development will change the Demand for labour in this occupation. 

 

 

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

Answer rating: 100% (QA)

a In the near term the introduction of licensing will likely decrease the supply of labor in the occ... View the full answer