Short Questions (25 points per question):

1.The US Department of Education was established as a new cabinet department in 1982.College costs (tuition, room, board, books, expenses), after adjustment for inflation, have gone up from $8,000 in 1980 to more than $20,000 today.Is this a coincidence?Discuss how the government may be helping colleges raise total costs through collusive behavior and first degree price discrimination.