Final answer:
A positive cross-price elasticity of demand indicates that the goods are substitutes; for example, an increase in the price of tea may result in a higher quantity consumed of coffee.
Step-by-step explanation:
When analyzing the relationship between two goods, the cross-price elasticity of demand refers to how the quantity demanded of one good (Good A) is affected by the change in the price of another good (Good B). In the case where the cross-price elasticity of demand is greater than 0, indicating a positive value, this means that the two goods are substitutes for each other. An example of substitute goods is coffee and tea; if the price of tea increases, people may purchase more coffee as an alternative, thereby increasing the quantity demanded for coffee.
On the contrary, if goods are complements, they would have a negative cross-price elasticity of demand. For complement goods like coffee and sugar, a price increase for sugar would lead to a decrease in the quantity demanded for coffee, as these goods are consumed together.