If the price of coffee increases, and the quantity demanded of tea also increases, what can we infer about the relationship between coffee and tea?

When the price of coffee goes up and people start buying more tea, it suggests that coffee and tea are substitutes. This means that when coffee becomes more expensive, some people choose to buy tea instead because they want a similar drink at a lower price. For example, if a cup of coffee costs $5 and a cup of tea costs $3, people might switch to tea when coffee prices rise. This behavior shows that consumers see tea as an alternative to coffee. The relationship between coffee and tea in this case is reflected in the concept of cross-price elasticity of demand, which measures how the demand for one good changes when the price of another good changes.