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 predict using the model of demand and supply how in the near term this new development is likely to change the$$Supply$$and the Demand for labour in this occupation.$2$ Marks

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Workers in a certain occupation are highly paid and work long hours. Many have developed a backward bending supply curve. Senior management would like these workers to work even more hours.

b$)$ As an HR Manager briefly explain to management the nature of a backward bending supply curve and advise management on how to structure the company's compensation package so that these workers will be motivated to work more hours. $3$ Marks