The local Seattle band achieved breakthrough achievements in a few weeks – millions of streams, many, many downloads and 100,000 albums. The band began to tour and responded to demand, and the fare began to climb. But now there are some interesting things: as the ticket price rises, the audience gets smaller and smaller – so far there is no problem, because what is happening is that the band is playing a smaller venue, but the fare is greatly improved – Still a victory. But then, the management of the band found a problem. With fewer and fewer viewers, all of the high-flag collections are getting more and more sales – band T-shirts, coffee cups, photo albums, etc.: “merch”. The ticket price for our Seattle band has more than doubled, the price is \$60.00, and the ticket price for each venue is still only about half. Everything is so good so far: 500 tickets for \$60, and \$25 more for 1,000 tickets. However, the average sales of the band averaged \$35. This equation now looks a bit different: 500 tix x \$(60.00 + \$ 35.00) is less than 1,000 tix x (\$ 25.00 + 35). The decline in the sale of higher-priced tickets has caused a decline in the proportion of merchandise sales. These two products are complementary. As the price of the band tickets rises, the demand for the band’s merchandise drops. You can calculate the cross-price demand elasticity (CPoD) as follows: CPEoD = (% change in quantity demand for commodity A) ÷ (% change in price of commodity A)