Interpretation of the Cross-price Elasticity Coefficient (IED):

In the cae of cross-price elasticity of demand it is the sign of the coefficient which is explained though we can also explain the magnitude of the coefficient as we do for price elasticity of demand.

Substitutes

The goods in question are substitutes when the cross-price elasticity of demand coefficient is positive, meaning as the price of good B increases demand for the good A will increase.

Complements

The goods in question are complements when the cross-price elasticity of demand coefficient is negative, meaning as the price of good B increases demand for the good A will decrease.

No Relation

The good in question is not related when the cross-price elasticity of demand coefficient is zero, menaing any change price of good B does not affect demand for the good A.