Questionable Economics

I submitted this as part of my first assignment in 'Introductory Microeconomics' at the end of a paper filled with many graphs and other complicated looking things. Apologies for the jargon, that's just how it works.

"The sex industry provides an example of a service traded in a market. For many people, the opportunity costs associated with the purchase and use of the service would emphasise its non-resource-related costs over the benefits of the next best alternative, as the value of the resources used (time, money and physical effort) in their next best application (outside of the sex industry) have the added benefit of not being associated with the sex industry. Though obviously subject to personal preference, these opportunity costs could include loss of personal respect, violation of personal values and the risk of ridicule and life-wreck that would result from being found out by friends, family or life partner.

Demand may be heavily influenced by societal values, which to some extent determine a rational decision-maker's need for sex (the benefit) as well as its moral costs when in the form of prostitution. Ready availability of substitutes such as consensual sex and video games may increase demand. Pornography could act either as a substitute or a complement, depending on peoples' preference. More research may be required.

I think that the demand for the services provided by the sex industry would be own-price inelastic. I would guess that for the majority of people, price would not be the primary factor in their decision to, ahem, partake, and once that decision was made, high prices would not likely push them from the market. Conversely, it seems that low-cost prostitution is unlikely to entice many into the market, nor encourage those already there."

Let's hope the tutor doesn't dislike me as much as I think she does.