Final answer:
Higher sales tax rates can significantly impact the cost of goods and services, influencing where individuals prefer to live or make large purchases.
Step-by-step explanation:
The combined sales tax rate would indeed influence where you would prefer to live or make large purchases. Higher sales tax rates can significantly impact the overall cost of goods and services, which may deter individuals from living in or making purchases in those areas. For example, if one city has a sales tax rate of 8% and another has a rate of 10%, individuals may be more likely to choose the city with the lower tax rate to minimize their expenses. This decision can be particularly relevant when making large purchases, such as a car or a house, as the higher sales tax rate can have a noticeable impact on the total cost.
Learn more about Sales tax rates