What does a negative E xy value tell us about the relationship between two goods?

A negative Exy value indicates a relationship between two goods where they are complementary goods. In economics, the cross-price elasticity of demand (Exy) measures how the quantity demanded of one good responds to a change in the price of another good. When Exy is negative, it signifies that as the price of one good increases, the quantity demanded for the other good decreases. This outcome is typical of complementary goods, which are products that are typically consumed together, such as coffee and sugar. If the price of coffee rises, people may buy less coffee, leading to a decrease in the quantity of sugar they also purchase, illustrating the complementary relationship. In this context, the other options do not appropriately reflect the implications of a negative Exy value.