All you have to do is look at retail gasoline or diesel prices vs the cost of crude over time.
You just made the point for FairTax analysts.
The price of gas/diesel fluctuates in lagged fashion according to the cost of crude.
That’s a really good example to show haw a market adjusts to a change in underlying costs.
And that’s exactly how the FairTax will be treated in general by businesses. When retail businesses realize a drop in supplier pricing because of the elimination of all and any federal income tax burden, they will adjust their own pricing downward and retain the same net profit. The consumer will not experience a price impact as the NRST is added at the cash register.