6.2 West Virginians who live near the border with other states can shop on either side of the border.

If they buy food in West Virginia, their total cost is the price of the food plus the tax. If they buy across the border in states that do not tax food, the total cost is the price plus the cost due to the extra travel. Tosun and Skidmore (2007) found that West Virginian food sales dropped 8% in border counties when a 6% sales tax on food was imposed. Explain why. (Hint: See the Challenge Solution and Solved Problem 4.4.)