The quantity of labor demanded definitely increases if the

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When the real wage rate falls, it becomes cheaper for firms to hire additional workers. As a result, they will demand more labor, leading to an increase in the quantity of labor demanded. The other choices may not necessarily lead to an increase in labor demand. For example, a rise in the real wage rate may lead to firms demanding less labor as it becomes more expensive for them to hire workers. The nominal wage rate does not affect the real purchasing power of workers, so changes in the nominal wage rate will not necessarily impact labor demand. A decrease in the supply of labor may lead to higher wages, but it may not necessarily lead to an increase in labor demand if firms are already able to find sufficient workers at the current wage rate.

The Quantity of Labor Demanded Definitely Increases If the