Consider a monopolist that has a constant marginal cost of $1 per unit. The

demand for the product has a choke price of $9. If the price was $4, the quantity demanded would be 5.Consider that there is a shock to the monopolist's costs and it increases by $1 per unit.

1. What is the new price that the monopolist would set?

2. What is the new quantity produced?

3. What is the new profit of the monopolist?

4. What is the new consumer surplus?

5. What is the new producer surplus?

6. Evaluate did the monopolist transfer the cost shock to the consumers in its entirety?

Very briefly compare and explain what happens to the total surplus before and after the cost shock.