Question

A positive cross elasticity of demand indicates that Athe two goods are.

Answer 1

Answer:

A positive cross--price elasticity value indicates that 2 goods are Substitutes

Answer 2

Answer:

A positive cross-price elasticity value indicates that the two goods are substitutes. For substitute goods, as the price of one good rises, the demand for the substitute good increases. For example, if the price of coffee increases, consumers may purchase less coffee and more tea.