In Terminal A at Sacramento airport, Peet's has a virtual monopoly on the sale of coffee past the point of security. Inverse demand for coffee in Terminal A is given by p(q) = 21 0.1q. Their cost function is given by C(q) = 1q + 1000 where the fixed cost is what Peet's pays Sacramento airport in rent.

Question: Plot the demand for coffee with equilibrium price and quantity and comment on the welfare effects of having a monopolist selling coffee in the terminal