Question

Seasonal influenza epidemics affect the health of population in many countries. One
way of countering this public health issue is to implement vaccination programme
targeting the elderly, since influenza vaccine is considered as effective not only in
preventing contraction of the disease, but also reducing risk of death after contraction.
Research done in Japan found price elasticity of demand for influenza vaccine: nearly
zero in nationwide, nearly zero in urban area, and -1.07 in rural area.
Subsidy for influenza vaccination is often provided to the elderly in order to encourage
them to receive a flu shot in developed countries.
COVID-19 has brought about severe adverse effects on the economy around the
globe, and Japan is no exception.
People have suspended social interaction at schools, work places, and restaurants
and shops, and this has caused an unprecedented level of decline in sales among
firms. The government and the Bank of Japan have implemented various measures,
the scale of which is also unprecedented, to counter the adverse effects of the
pandemic by providing financial support for economic activities.
Discuss whether price discrimination is possible in the context of influenza vaccine

Answer 1

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