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A supermarket is a local monopoly that sells many grocery products, using markup pricing. That is,...

A supermarket is a local monopoly that sells many grocery products, using markup pricing.
That is, its price for a product is P = c(1 + m), where c is how much it pays for each unit of the
product from producers, and m is the markup it adds to the product when selling to consumers.
Products may differ in the price elasticity of demand

If the price elasticity for a good is –6, what will be the supermarket’s optimal markup for the good?

The store sets m = 60% for a freshly baked cake but m = 10% for some frozen good. Based on this information, which of these two products has more elastic consumer demand?

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