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12. The State of Alaska has two types of town. Type A towns are well-to-do, and type B towns are much poorer. Being wealthier, type
12. The State of Alaska has two types of town. Type A towns are well-to-do, and type B towns are much poorer. Being wealthier, type A towns have more resources to spend on education; their demand curve for education is 400 for education which are given by 2-200-4P P, where P is the price of a unit of education. Type B towns have a demand curve demand? decides to redistribute from type A towns to type B towns. In particular, they tax type A towns by $5 for each unit of education they provide, and they give type B towns $5 for each unit of education they provide. What are the new tax prices of education in the two towns? How many units of education do the towns now purchase
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