If the price of coffee rises significantly and the quantity demanded for tea increases as a result, what does this indicate about the relationship between coffee and tea?

When the price of coffee goes up and more people start buying tea instead, it shows that coffee and tea are substitutes. This means that when the cost of one item increases, people look for alternatives that can replace it. For example, if coffee prices rise, someone who usually drinks coffee might choose to drink tea instead, leading to higher tea sales. This change in buying behavior helps us understand how the two products are related in the market. The concept of cross price elasticity of demand helps measure this relationship, showing that the increase in coffee's price leads to an increase in the demand for tea.