suppose that the demand for the final product drops. Using labor demand curve D1

Question

suppose that the demand for the final product drops. Using labor demand curve D1 as the starting point, what happens to the demand for labor? What are the new equilibrium wage rate and employment level? Does the amount of economic rent change?

I am confused, because I would assume that if demand for the final product drops, demand for labor drops, making the wage rate lower, and the employment level lower. Also causing the economic rent to go down as well. Am I correct or completely way off base?
This is from my college textbook Economics-A contemporary Introduction by William A. McEachern

Explanation / Answer

When the demand for the final product drops, than the D1 curve shifts left to D2 forming a new equilibrium point. Where the new wage rate is 'c' and employemnt level is 'e'. Economic rent: it is any excess payment for a service which is above the minimum amount a t which the person is willing to provide a service. For Ex: if Jane is willing to work for $30,000 per month and receives $35,000 per month, than the economic rent is the excess amount $5000. So in our case the new economic rent is (c-v), which is lower than the previous equilibrium point's economic rent of (b-v). Yes, you are correct.

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