If the price of coffee increases, and the quantity demanded for tea also increases, what does this indicate about the cross-price elasticity of demand between these two goods?

When the price of coffee goes up and people start buying more tea, it suggests that coffee and tea are substitutes for each other. This means that when coffee becomes more expensive, some consumers choose to buy tea instead, leading to an increase in the quantity demanded for tea. The cross-price elasticity of demand measures how the quantity demanded of one good changes when the price of another good changes. In this case, since the price of coffee and the quantity demanded for tea move in opposite directions, the cross-price elasticity of demand is positive. For example, if coffee prices rise, and you notice more people ordering tea at a café, it shows that they see tea as a good alternative to coffee.