Final answer:
When the wage rate changes, it affects the VMPL, labor demand curve, and labor supply curve.
Step-by-step explanation:
When the wage rate changes, it has different effects on the VMPL (Value of Marginal Product of Labor), labor demand curve, and labor supply curve.
If the wage rate increases, the VMPL decreases. This is because the additional output produced by each additional unit of labor, the marginal product, becomes smaller as more labor is hired.
The labor demand curve shows the relationship between the wage rate and the quantity of labor demanded. An increase in the wage rate will cause a movement up along the labor demand curve, as employers will demand less labor because of the higher cost. The labor supply curve shows the relationship between the wage rate and the quantity of labor supplied. An increase in the wage rate will cause a movement up along the labor supply curve, as workers will be willing to supply more labor at a higher wage.