Consider the case where the output price elasticity with respect to the minimum wage is 0.07 in the restaurant sector (as found by Aaronson 2001). At the same time, the average wage elasticity with respect to the minimum wage is around 0.2 in the restaurant industry. Furthermore, labor costs are initially 1/3 of overall costs in that sector (i.e., (wL)/(wL rK) = wL/C = 0.33), where output Y=F(L,K), and r is rental rate for capital, K. How much would average wages and output prices change from a 39% minimum wage change (from $7.25 to $10.10)? Now, if output Y and inputs L and K did not change at all, how much would revenue and overall production costs change? What does this suggest about how profits are likely to be affected from the minimum wage increase? How would your answers change if output fell, and input substitution occurred