Locally Produced Condoms?

(Photo: Holly Clark)

The Los Angeles City Council may require condoms in porn movies produced in the city limits.�How will this affect the market?��Whether companies stay in L.A. or leave, costs will rise (condom costs if they stay, the costs of relocation, loss of agglomeration economies, if they move outside the city limits).� If costs do rise, will that matter to producers? I imagine product demand is fairly�inelastic, and they can easily pass the cost increase onto consumers. But even if costs were unaffected, consumer�demand�might shift far leftward if producers remained in L.A., since customers may not wish to view protected sex. Industry members lobbied strongly against the bill ? perhaps because they feared the direct drop in demand rather than the cost increase.

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