In the context of labor demand dynamics, as wages increase, the quantity of labor demanded tends to ________ due to the law of demand.

In labor demand dynamics, when wages increase, the quantity of labor demanded generally decreases. This happens because employers have to pay more for each worker, which can lead them to hire fewer people or seek alternative solutions like automation. The law of demand states that when the price of something rises, the quantity demanded usually falls. For example, if a company pays $20 an hour and then raises it to $25, they might decide to hire one less worker because their costs have gone up. As a result, higher wages can lead to lower demand for labor.