What would happen to the relative price of food and haircuts


Problem

In most states, there is no sales tax on food. Some people say that a consumption tax-a tax on all goods and services-would be better. If all sales taxes are replaced by a consumption tax, what would happen to the relative price of food and haircuts and how would you change your purchases of food and haircuts? Which tax would you prefer?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What would happen to the relative price of food and haircuts
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