Seven years ago, you started a crosstown delivery service. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs.Initiallyyou charged the same price for each service,but since the beginning of theCovid-19 pandemic you have seen an increase in the demand for your package service.The demand for the package service seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel service and the package service, i.e. should you segment the your market? Does segmentation increase profits?

Complete the table below for the combined market of parcels and packages.

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