The price of peaches goes up and I observe you buying fewer strawberries.This implies strawberries must be a normal good.

Question

Quizplus · Accepted Answer

Since the price of peaches has gone up, it is likely that people will substitute them with other fruits such as strawberries. If you are buying fewer strawberries than before, it suggests that strawberries are a normal good as their demand decreases with an increase in the price of peaches, which are likely substitutes for strawberries.

The Price of Peaches Goes Up and I Observe You