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   1- If you travel through the western United States in


  

1- If you travel through the western United States in the summer, you are much more likely to encounter a shortage of government-run camping spaces than of motel rooms.  Why?  Use analysis to answer the question.  Are there different incentives at work for the “owners” of the government-run camping spaces and the owners of motels?

2- What difference would you expect to observe in the fees set by three young physicians just setting up private practice if one financed his education by borrowing and must now make payments of $9,600 per year for 15 years, another had her entire education paid for by her parents, and the third went all the way through medical school on government-provided scholarships and grants? How are current doctor fees (what they can charge patients) related to past costs?

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