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Economics of sex and drugs - Essay Example

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The National Western stock show in Denver is expected to affect the prices of prostitution services in Denver in several ways particularly due to the fact that there will be an influx of people into the city. It should be noted that in the law of supply and demand which explains…
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Economics of sex and drugs
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Economics of sex and drugs

Download file to see previous pages... eople who will be visiting the city of Denver will lead to an imbalance in the market for prostitution and this is bound to create some pressures on the prices for the services. The various dimensions of the effects as well as the movements expected are discussed below in order to have a clear picture on the expected outcomes (Moffatt, Peter and Simon, 681).
As has been mentioned above, the first basic effect of the National Western Stock show is the fact that there will be some imbalances in the supply and demand of prostitution services. This is due to the fact that a lot of people are expected to come to the city to show case their products and services while others will be visiting the city in order to experience the show. The first dimension of this influx is that there will be an increase in the demand for prostitution services and this is expected to push the prices upward as the market forces adjust themselves accordingly. It is expected that the prostitutes operating in the city will increase the prices of their services in order to benefit from increased demand for their services (Moffatt, Peter and Simon, 683).
Additionally, the influx of people will bring in people with more disposable income and; therefore, they will be willing to spend their money on various forms of leisure and entertainment such as seeking the services of prostitutes. This will lead to an increase in the prices of the services since they will be willing to pay more than normal in order to access the scarce services. It is; however, important to note that this may not go on for long as the market will adjust itself almost immediately as it is expected that other prostitutes from other cities and localities will also invade the city in order to benefit from offering services to the people at the show. This means that the supply of prostitution services may actually increase and this may put a downward pressure on the prices (Dill 96).
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