Consider the market for alcoholic beverages in Ann Arbor. For simplicity, we will aggregate across all the various types of beverages. Let's consider one particular bar. Suppose that the bar owner knows that the demand curve they face for selling alcoholic beverages can be summarized by Q=7500-250P. Further, suppose that this bar owner's monthly total cost of running their bar is TC(Q) = 5000 + 9Q.

(A) [4 points] If this owner is trying to maximize their profits, what price should they set per drink? What will their profits be?

(B)[2 points] The landlord of the bar decides to increase the monthly fixed rent by $1000 per month. How should the bar owner handle this increase? How much of this increase should they pass on to their customers?