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You just explained supply and demand to a T. Want to explain how he's wrong again or do you just want to let this one go?
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Alright, let me try again.
There is a stigma attached to pornography suppliers that prevents a certain number from entering the business.
For example, a Baptist church would run a fundraiser selling hamburgers, but not pornography. However according to some sources 92% of men consume pornography so there is obviously a demand for both.