Consider the market for chicken. Assuming that chicken and beef are substitutes, an increase in the price of beef will:
A. decrease the demand for chicken creating a lower price and a smaller amount of chicken purchased in the market.
B. decrease the supply of chicken creating a lower price and a smaller amount of chicken purchased in the market.
C. increase the demand for chicken creating a higher price and a greater amount of chicken purchased in the market.
D. increase the supply of chicken creating a lower price and a greater amount of chicken purchased in the market.
Answer: C
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When this monopolist maximizes its profit, consumer surplus equals the area:
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