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are weak and producers strong, the benefit of the demand price subsidies are shifted from consumers to
cultural producers.
Figure 1: Incidence of different types of government intervention in the cultural sector
(a) Granting monopoly power
(b) Cutting demand taxes or
granting demand subsidies
(c) Cutting supply taxes or giving tax incentives for supply
Key: ∆CS and ∆PS refer to the change in the consumer surplus and producer surplus, respectively.