What happens to the demand for labor when the wage rate decreases, assuming all other factors remain constant?

When the wage rate decreases, the demand for labor typically increases, assuming all other factors stay the same. This happens because employers find it cheaper to hire more workers when wages are lower. For example, if a factory pays its workers $15 an hour and then reduces the wage to $12 an hour, the factory might decide to hire more workers to increase production since labor costs are lower. As a result, more jobs may become available, and businesses can afford to expand their operations. This relationship between wage rates and labor demand is a key idea in understanding how labor markets function.