When the cross-price elasticity of demand between two products is positive,the two goods are said to be substitutes.

Question

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When the cross-price elasticity of demand between two products is positive, it means that an increase in the price of one product leads to an increase in the demand for the other product. This indicates that the two goods are substitutes as consumers are willing to switch to the other product when the price of the first product increases.

When the Cross-Price Elasticity of Demand Between Two Products Is