Android Studio needs JDK 7 for Android-L mac

Setting the directory to:/Library/Java/JavaVirtualMachines/jdk1.7.0_60.jdk/Contents/Homein JDK settings solved my issue. I had the same problem getting started up. Hope this helps!

@megapoff answer is correct . But I face little difficulty to fix it . So here is the detail solution step-by-step

For Mac

1. Download the DMG file of JDK-7 from here
2. Click on DMG and follow the instructions . It will install and configure JDK-7 on mac .
3. Now in your android studio go to File->Project Structure -> SDK Location .

4. In JDK location click on browse and go to /->Library->Java->JavaVirtualMachines->jdk1.7.0_60.jdk->Contents->Home

   Note :- Its Not /System/Library it's /Library

5. click Apply and OK ....Bingo ..... Build the project again .....

The other answers are very correct but I want to be more concise and clear. To prevent others from visiting this page multiple times unnecessarily.

Important* Old Path is /System/Library/Java... and New Path is /Library/Java... (Not under the System directory)

Replace old path: /System/Library/Java/JavaVirtualMachines/jdk1.6.0_0.jdk/Contents/Home

Set your new path: /Library/Java/JavaVirtualMachines/jdk1.7.0_79.jdk/Contents/Home