Problem: The government of a large U.S. city recently established a living wage law that beginning January 1 of next year, will require all businesses operating within the city limits to pay their workers a wage no lower than $8.50 per hour. The current equilibrium wage for fast food workers is $7.50 per hour in this city. Predict what will happen to each of the following beginning on January 1 of next year:
1. The quantity of labor supplied by fast food workers
2. The quantity of labor demand by fast food producers
3. The number of unemployed fast food workers in this city