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)?

Please help me with which state would have a higher amount of services consumed and which state would your expect the price of prositution services to be hihger with a good explanation.

Thank you!