Why am I getting "TypeError: react__WEBPACK_IMPORTED_MODULE_1___default.a.useState is not a function" error when using reactjs hooks?

I'm trying to use this component straight from the Material Ui (Simple Menu https://material-ui.com/demos/menus/#menus) docs in order to make a menu appear. However, I'm getting TypeError: react__WEBPACK_IMPORTED_MODULE_1___default.a.useState is not a function error with my current attempt below. I tried:

• import React, { useState } from 'react'; and then got rid of React inside const [anchorEl, setAnchorEl] = React.useState(null); to make it look like: const [anchorEl, setAnchorEl] = useState(null);
• I also tried replacing null with a number but still got same error.

Note: Another attempt installed the right packages and made my package.json file look like this (TypeError dispatcher.useState is not a function when using React Hooks):

{
  "name": "speedy-react",
  "version": "0.1.0",
  "private": true,
  "dependencies": {
    "@material-ui/core": "^3.9.0",
    "@material-ui/icons": "^3.0.2",
    "classnames": "^2.2.6",
    "node-sass": "^4.11.0",
    "prop-types": "^15.6.2",
    "react": "16.7.0-alpha.0",
    "react-dom": "16.7.0-alpha.0",
    "react-test-renderer": "16.7.0-alpha.0",
    "react-scripts": "2.1.3"
  },
  "scripts": {
    "start": "react-scripts start",
    "build": "react-scripts build",
    "test": "react-scripts test",
    "eject": "react-scripts eject"
  },
  "eslintConfig": {
    "extends": "react-app"
  },
  "browserslist": [
    ">0.2%",
    "not dead",
    "not ie <= 11",
    "not op_mini all"
  ]
}

Screen shot of error:

What am I doing wrong and how can I fix it?

import React from 'react';
import Button from '@material-ui/core/Button';
import Menu from '@material-ui/core/Menu';
import MenuItem from '@material-ui/core/MenuItem';

const SimpleMenu = () => {
    const [anchorEl, setAnchorEl] = React.useState(null);

    function handleClick(event) {
        setAnchorEl(event.currentTarget);
    }

    function handleClose() {
        setAnchorEl(null);
    }

    return (
        <div>
            <Button
                aria-owns={anchorEl ? 'simple-menu' : undefined}
                aria-haspopup="true"
                onClick={handleClick}
            >
                Open Menu
            </Button>
            <Menu id="simple-menu" anchorEl={anchorEl} open={Boolean(anchorEl)} onClose={handleClose}>
                <MenuItem onClick={handleClose}>Profile</MenuItem>
                <MenuItem onClick={handleClose}>My account</MenuItem>
                <MenuItem onClick={handleClose}>Logout</MenuItem>
            </Menu>
        </div>
    );
};

export default SimpleMenu;