If cross-price elasticity of demand between two goods is positive, how are the goods classified in the course framework?

### Why this is right Positive cross-price elasticity means demand for one good moves in the same direction as the other good's price. This is the stated indicator of substitute goods. ### The concept Substitutes can serve as alternatives to one another, so a change in one good's price may redirect buyers toward the other. Complements are used together and have negative cross-price elasticity in the framework provided. ### The other options - **B. Complements**: The material associates complements with negative cross-price elasticity. - **C. Unrelated inputs**: This is not the classification indicated by cross-price elasticity here. - **D. Fixed resources**: This concerns production conditions, not relationships between demanded goods. ### Terms - **Cross-price elasticity**: A measure of how demand for one good responds to a change in another good's price. ### Remember Positive means substitutes; negative means complements.