a) (10 points) Calculate the equilibrium price and quantity of daycare services

a) (10 points) Calculate the equilibrium price and quantity of daycare services (that is the number of children put in daycare each day).b)Someone in the government has proposed that parents should not have to pay more than $5 per day per child for daycare services This would be a price ceiling on the price that day care providers could charge. What would be the number of children accepted by day care providers under this price ceiling? What is deadweight loss that results from this price ceiling?Suppose that the government chooses to subsidize daycare providers directly so that the cost to parents would be limited to $5 per day per child (although the daycare providers would be receiving the $5 plus the subsidy per child). What subsidy (per day per child) would need to be paid to the daycare providers to get them to offer the quantity of daycare that would be demanded by parents at the price of $5? What would be the total cost of this subsidy to the government of Quebec?