The markets for prostitution in Nevada and New Jersey have two important differences: (i) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and (ii) 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, in which state would you expect the price of prostitution services to be higher? Which state would have the higher amount of services consumed (adjusted for population differences)? Explain.