Hong Kong’s first minimum wage is set at $HK28 an hour—$HK5 less than labor unions wanted, but $HK5 more than the employers had offered. About 315,000 people will be affected by the new wage.

What will be the effects of the minimum wage if the employers’ offer is equal to the equilibrium wage? What will be the effects of the minimum wage if the labor unions’ demand is equal to the equilibrium wage?