if-the-wage-rate-decreases-how-does-this-affect-a-firms-demand-for-labor-assumin

Question

If the wage rate decreases, how does this affect a firm's demand for labor, assuming MRP is constant?

Accepted Answer

The firm's demand for labor increases.

Answer

The firm's demand for labor decreases.

Answer

The firm's demand for labor becomes unpredictable.

Answer

The firm's demand for labor remains unchanged.