What happens if the XED is: 1. Positive 2. Negative

1. Positive simply makes Good X and Y Substitutes to each other. As XED gets Larger, this makes Good X get more Extreme % in Qd as % Change in Price for Good Y 2. Negative makes Good X and Y Complementary Goods. As XED gets more Negative, Good X gets more Affected in % in Gd as % Change in Price for Good Y