If employers are paid a subsidy of $0.75 per hour for hiring teenage workers, then

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While the subsidy may incentivize employers to hire more teenage workers, it does not necessarily mean that employers will pay teenage workers exactly an extra $0.75 per hour. The subsidy may also cause increased competition among teenage workers, leading to a lower wage rate. Additionally, employers may have already planned to hire teenage workers regardless of the subsidy, which would not lead to any increase in wages. Therefore, the teenagers' wage rate will usually increase by less than $0.75 per hour.

If Employers Are Paid a Subsidy of $0