The markets for prostitution in Nevada and New Jersey have two important differences: 1) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and 2) customers in New Jersey face higher risks of contracting diseases from prostitutes because the illegal nature of the business makes reliable information about product quality much more costly to obtain. Given these facts, which state would you expect the price of prostitution services to be higher? Why? Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market? can you explain it in 260 words please!
The markets for prostitution in Nevada and New Jersey have two important differences: 1) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and 2) customers in New Jersey face higher risks of contracting diseases from prostitutes because the illegal nature of the business makes reliable information about product quality much more costly to obtain. Given these facts, which state would you expect the
can you explain it in 260 words please!
In that condition, we are to assume that only the logic in this problem causes a difference in the supply and demand of prostitutes in new jersey and Nevada. there are two points first is that cause sift in the supply and demand curve in new jersey. first of all, prostitution faces higher costs. these increases in the cost then it leads to decreases which increase the price and decrease quantity.
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