A positive cross elasticity of demand means that two goods are substitutes.
Explanation:
The cross elasticity of demand for substitute goods is always positive in light of the fact that the demand for one good upsurges when the price for the substitute good increases. For instance, if the price of coffee rises, the quantity demanded for tea (a substitute brew) increases as consumers switch to a more affordable yet substitutable alternative. This is mirrored in the cross elasticity of demand formula as well. Both the numerator (% change in the demand of tea) and denominator (the price of coffee) show positive escalations.
<span>The Kuomintang was another name for the Chinese Nationalist Party. The Chinese Political Party ruled China from 1927 to 1948. It was initially founded on 1912 and ruled China for a short time. The
Kuomintang took control of Taiwan instead after they lost the Civil War in 1949
to the Communist Party of China</span>
