What likely happened to the price of prostitution services in New Essay

What likely happened to the price of prostitution services in New Jersey during the most recent Super Bowl and why - Essay Example During the event, prices were adjusted accordingly, and this made the prices go up due to the various reasons outlined in this paper. First, the increases in demand for sex in New Jersey during the Super Bowl event lead to an increase in prices of the prostitution services in the city. In economic terms, prostitution refers to a commodity traded in a supply and demand market. Braeutigan illustrates that, if the demand of the commodity increases and the supply remains constant then prices of that commodity goes up (45). The influx of people in New Jersey to watch the Super Bowl games at Mat Life stadium increased the demand for prostitution, which in turn increased the price of the prostitution services in the city. Second, the constant supply of prostitution services during the Super Bowl also contributed to the increase in price of prostitution services in New Jersey (Stigler 6). Super Bowl event attracted tens of thousands of people to the city of whom most of them wanted prostitution services. Due to the constant supply of the service provided during the event, the prices went up. There was a low level of supply of the prostitution services in the city during the event because of the Super Bowl crackdown, strict rules and regulations laid by the NYID police during the event. These were meant to reduce the number of prostitution providers in the city who were not legally permitted into the business. Therefore, the supply of the prostitution services during the event was very low, hence; caused the increase in the prices of the prostitution services in the city Third factor that lead to increase in the prices of prostitution services in New Jersey is the monopolistic competition market structure in New Jersey. This type of the market structure is where there are few firms in the prostitution industry more so during the Super Bowl event. This created the monopoly power in the prostitution industry in the New Jersey, which resulted in high