Total for this Context: 50 marks Context 2 THE UK CULTURAL ECONOMY - ENJOYING THE BRIGHTER SIDE OF LIFE Study Extracts D, E and F, and then answer all parts of Context 2 which follow. Extract D: Visitor attendance figures for London theatres and selected London museums, in thousands, 2006 to 2013 Visitor attendance: Visitor attendance: London theatres selected London (thousands) museums' (thousands) 2006 12351 13 391 2007 13636 13697 2008 13892 13718 2009 14258 14718 2010 14152 5764 2011 13915 6147 2012 13993 16257 2013 14587 18234 "Includes the British Museum, the Natural History Museum and the National Gallery Source: Museums and Galleries: Department for Culture. Media and Sport Society of London Theatre. January 2015 Extract E: Arts and culture: making life better? As news reports focus on seemingly endless problems, it is easy to overlook the brighter side of life, Arts Council England (ACE) is an organisation that 'champions, develops and invests in artistic and cultural experiences that enrich people's lives'. "In short,' it says, 'it makes life better.' Between 2011 and 2015, ACE allocated $1,4 billion of taxpayers' money, and an estimated S $1 billion from the National Lottery, to a range of activities and events, such as those provided by museums, theatres, and music festivals.' It can be argued that the social benefits of these activities outweigh the private benefits and, in addition, it is slated that for every $1 . invested in arts and culture, up to $6 is generated elsewhere in the economy. Education also has a role to play in enriching people's lives. Schools provide countless 10 opportunities for children and young adults to experience a variety of cultural and sporting activities. In some towns, local councils have provided licences to enable small businesses, such as bars and cafes, to host 'live' entertainment events, with other firms providing sponsorship for the shows. This allows for a more market-based approach. The performers enjoy 15 performing, the firms generate income from the spectating public and the public have a great time. Everybody wins! Source: Arts Council England and News reports, January 2015Extract F: If music be the food of love, play on One aspect of arts and culture that has seen growing popularity in recent years is music festivals. Faced with falling incomes due to changes in the way consumers obtain music, artists have been forced to tour and perform live more often, Whilst on the one hand new artists have benefited from the removal of barriers to entry, such as the need for a recording contract, once in the industry it has become more difficult to achieve the 'superstar lifestyle. 5 This is of course to the benefit of the many thousands of festival-goers who are able to enjoy a selection of their favourite bands for the price of a single festival ticket. It would cost fans much more to see these artists in separate concerts. However, there are concerns that, with ticket prices rising year on year, some fans are being priced out of the market. The price of a ticket to attend one of the most well-known festivals in the UK increased by 10 130% between 2000 and 2013. A much smaller music festival, held in the north of England, has also seen ticket prices rise, but not as significantly, as it has moved to a larger site. Between 2010 and 2014, the ticket price for the northern festival rose from $85 to E119, during which time the number of tickets on sale increased from 8000 to 14000. Here too, the benefits provided by Arts Council England have been seen, as it has contributed money 15 towards the construction of a new stage. Source: News reports, January 2015 2016 Context 2 1) Using Extract D calculate the percentage change in London museum attendance between 2006 and 2013. Leave your answer to 1 decimal place. (2 marks) 2) Explain how the data in Extract F suggests there has been an increase in demand for the 'smaller North of England' music festival between 2010 and 2014. (4 marks) 3) Using a diagram, explain the effect of price elasticity of supply has in a market experiencing an increase in demand. (9 marks) 4) Using the data and your knowledge of economics, evaluate the view the providing subsidies is the best way to correct the market failure associated with the arts and cultural activities: (25 marks)