How to sniff HTTP traffic from the command line on Linux

Suppose you want to sniff live HTTP web traffic (i.e., HTTP requests and responses) on the wire for some reason. For example, you may be testing experimental features of a web server. Or you may be debugging a web application or a RESTful service. Or you may be trying to troubleshoot PAC (proxy auto config) or check for any malware files surreptitiously downloaded from a website.