If the price of good A increases, leading to an increase in the quantity demanded of good B, what does this indicate about the relationship between goods A and B in terms of cross-price elasticity?

When the price of good A goes up and people start buying more of good B, it shows that goods A and B are related in a specific way. This situation suggests that these two goods are substitutes for each other. Substitutes are products that can replace one another; for example, if the price of coffee rises, people might buy more tea instead. The increase in demand for good B due to the price rise of good A indicates a positive cross-price elasticity, meaning that as the price of one good changes, the demand for the other good changes in the same direction. This relationship helps businesses understand how changes in pricing can affect consumer choices between similar products.