Quebec, Canada, offers a per-child subsidy on day care for

Quebec, Canada, offers a per-child subsidy on day care for young children that lowers the price to $ 7 per child as of 2011 (at a cost of about $ 10,000 per child per year).
a. What is the effect of this subsidy on the equilibrium price and quantity?
b. Show the incidence of the subsidy on day care providers and parents using a supply-and-demand diagram.

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