You and I both have homothetic tastes. When the price of peaches goes up, you buy more strawberries and I buy fewer. Which of the following must be true.
A. Peaches are more substitutable with strawberries for me than they are for you.
B. Peaches are more substitutable with strawberries for you than they are for me.
C. Strawberries are normal goods for you and inferior goods for me.
D. Strawberries are normal goods for me and inferior goods for you.
E. Both (a) and (c).
F. Both (b) and (c).
G. Both (a) and (d)
H. Both (b) and (d)
Answer: B
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