Please read the following excerpt from The Economics of Public Issues, R.L. Miller, D.K. Benjamin and D.C. North, 16E (attached):

Chapter 5. Sex, Booze and Drugs Chapter 8. Are We Running Out of Water?

After reading them, post your responses to my Discussion Board questions.

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, 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 your answer.