Problem $1$

Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward:

a$)$ Technological advances have made it less costly for firms to create a safer working environment $($e$.$g$.$ fewer resources can be spent on monitoring and enforcing safety$).$

b$)$ The phenomenal success of a new reality TV show called $$America$$s Toughest Jobs$$ has imbued millions of viewers with a more positive perception of work$-$related risks.

Using supply and demand diagrams, show how each of the two developments can explain the drop in the compensating wage differential. Can information on the number of workers employed in the risky occupation $($or the changes therein$)$ help determine which of the two explanations is more plausible? How?