Tracey Biogenetics, Inc purchases anti-snoring devices from a manufacturer in China and distributes them to retail stores throughout the United States. Tracey's management has estimated that within the range of feasible prices for the devices, the elasticity of demand of the retail stores is -2.0. If Tracey can obtain any quantity of devices from the manufacturer for a fixed price of $8, answer the following:
a. What will be its profit-maximizing markup percentage?
b. What price should it charge for its anti-snoring devices?

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The Answer of Tracey Biogenetics, Inc purchases anti-snoring devices from a manufacturer in China and distributes them to retail stores throughout the United States. Tracey's management has estimated that within the range of feasible prices for the devices, the elasticity of demand of the retail stores is -2.0. If Tracey can obtain any quantity of devices from the manufacturer for a fixed price of $8, answer the following:
a. What will be its profit-maximizing markup percentage?
b. What price should it charge for its anti-snoring devices?

Tracey Biogenetics, Inc Purchases Anti-Snoring Devices from a Manufacturer in China