demand and willingness to pay

Tuobodom is the district capital of the Techiman-North Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. - Definition, Theory, Formula & Example, Returns to Scale in Economics: Definition & Examples, Demand in Economics: Definition & Concept, Competitive Market: Definition, Characteristics & Examples, The Cobb Douglas Production Function: Definition, Formula & Example, Perfect Competition: Definition, Characteristics & Examples, Market Equilibrium in Economics: Definition & Examples, What is an Economic Model? The level of income also had no moderating effect on the relationship between barriers (β = 0.743, p = 0.551) and WTP. The study was conducted after China had declared that the coronavirus outbreak was largely under control. Methodology, All the response options were ‘strongly agree’, ‘agree’, ‘disagree’ or ‘strongly disagree’. The person has to pay $4, which is more than the marginal benefit. The origin of the outbreak of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) was initially detected in Wuhan, China in December 2019. By a more specific breakdown, the majority responded probably yes (54.8%; 95% CI 53.2–56.5) followed by definitely yes (28.7%; 95% CI 27.3–30.3%). Explain how buyers' willingness to pay, consumer surplus, and the demand curve are related. During the data collection period, May 1–19 2020, the total daily confirmed cases of COVID-19 in China were mainly in the single digits, except on 9 and 10 May, where the total number of cases were 14 and 17, respectively. Perceived benefits and barriers to vaccination (namely vaccine efficacy and adverse event concerns) of the health belief model constructs were significant predictors of COVID-19 vaccination intent. https://doi.org/10.1371/journal.pntd.0008961.g003. The new law stipulates stringent regulatory requirements for researching, producing, distributing, and using vaccines. External cues to action were found to be important, namely the provision of comprehensive information about the vaccine when it is available. WORKSHEET – DEMAND AND WILLINGNESS TO PAY PRINT FOR LECTURE Demand for Movies per Month Price Q D by Ann Q D by Ben Total Q D $10 0 0 $9 1 0 $8 2 1 $7 3 2 1. Methodology, Demand curves are used to estimate behaviors in competitive markets and are often used with supply curves to estimate the market equilibrium price, or the price at which sellers are willing to sell the same amount of a product … Materials and Methods 2.1. The intention to accept a COVID-19 vaccine was measured using a one-item question (If a vaccine against COVID-19 was available on the market, would you take it?) Visualization, A substantial proportion was concerned about fake or faulty COVID-19 vaccines; however, this was not a significant predictor of vaccination intention. This study revealed that most were willing to pay an amount of CNY¥100 [US$14] and CNY¥200 [US$28] for COVID-19 vaccine. Other influences of vaccination intention and WTP, such as demographic factors and psychological characteristics (namely participants’ health perception, presence of chronic diseases, and knowing someone in the community who has had COVID-19) assumed to exert their effect via changes in the components of the HBM were also investigated. Validation, Writing – original draft, Under the perceived barriers construct, concerns about the COVID-19 vaccine being faulty/fake and affordability were reported by 82.0% and 75.1%, respectively. Furthermore, the responses were based on self-report and may be subject to self-reporting bias and a tendency to report socially desirable responses. Funding: This study was supported by the Pilot Project of the Fujian Provincial Department of Science and Technology (No. The findings imply that promoting COVID-19 vaccination in the forms of advertorials and testimonials may serve as a cue to action to get vaccinated. We commenced a cross-sectional, web-based anonymous survey using an online questionnaire. Preference in domestic or foreign/imported COVID-19 vaccine was also queried. Willingness to pay (WTP) is the maximum amount an individual is willing to hand over to procure a product or service. Previous research implies that high perceived susceptibility and high-risk perception translate into better preventive actions and are associated with enhanced epidemic control [25]. The great majority had a college degree (64.8%) compared to secondary school and below (35.2%). Economists refer to WTP as the reservation price (Monroe, 1990). The survey was conducted from 1–19 May 2020. COVID-19 experience assessed whether participants had any family members, or any friends, neighbors or colleagues with confirmed COVID-19. Data Availability: All data files are available from the Havard Dataverse database (https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/AC89XZ). Findings on the preference of domestically-made over foreign-made COVID-19 vaccines revealed that 64.2% (95%CI 62.6 to 65.8) reported a preference for domestically-made and 11.9% (95%CI 10.8 to 13.0) preferred foreign-made COVID-19 vaccines. Perceived benefits and barriers to vaccination (namely vaccine … Despite these limitations, we believe that our findings contribute tremendously to understanding public demand and hesitancy regarding the COVID-19 vaccine. The majority of respondents were willing to pay between CNY¥100 and CNY¥400, and a lower proportion reported a WTP of CNY¥500 and above. Therefore, the objectives of this study were to determine COVID-19 vaccination intent and WTP. Calculate the producers' surplus for the supply... What is producer surplus? The full area below the demand curve is buyer's willingness to pay, and area above the equilibrium price refers to consumer surplus. Writing – review & editing, Affiliation Consumer surplus refers to the amount of product's price which the consumer pays reduced from the total product's price consumer willing to pay. The study has slight over-representation of responses from the Fujian province, where the study originates. If the demand flexibility is low, then the consumer may be willing to pay a higher price. However, despite the potential benefits associated with these technologies, the level of demand and acceptance among smallholder farmers remains largely unknown. Methodology, No, Is the Subject Area "Professions" applicable to this article? Supervision, Willingness to pay (WTP) has been defined as the maximum amount of money a customer is willing to spend for a product or service (Cameron and James, 1987; Krishna, 1991). Writing – review & editing, Roles Further, household in the highest income group has the largest willingness to pay ($1718). Additionally, future studies should also consider examining the acceptance and WTP in the context of other epidemiologically important parameters such as different levels of community transmission of COVID-19. The new law also imposes tough penalties for violating regulations on the production and sales of vaccines [35]. The study has less representation of participants from the western and central regions. Explain how 'seller' costs, producer surplus, and the Supply Curve are related. Thus, WTP is conditional on the type of a certain good or service. All other trademarks and copyrights are the property of their respective owners. The demand curve helps use measure this relationship by looking at the area below the demand curve and above the price is the sum of the consumer surplus Fig 4 shows the findings on the confidence of domestic and foreign-made COVID-19 vaccines. The findings demonstrate the utility of HBM constructs in understanding COVID-19 vaccination intent and WTP. 2. Thus, the consumer surplus and buyer's willingness to pay are related to each other in this sense. How is it measured? HBM constructs have been recognized as an important predictor of influenza vaccination uptake in previous studies [6–8]. Investigation, A demand curve is the graphical depiction of the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that price. This study was to examine possible factors that influence the inhabitants of semi-rural community willingness to pay and demand for solid waste management service. PLOS Neglected Tropical Diseases is the top Open Access tropical medicine journal, featuring an International Editorial Board and increased support for developing country authors. The willingness-to-pay for the COVID-19 was determined and was found to be positively associated with income. In economics, willingness to accept (WTA) is the minimum monetary amount that а person is willing to accept to sell a good or service, or to bear a negative externality, such as pollution. Further, participants who noted that they will only take the COVID-19 vaccine if it is taken by many in the public expressed lower vaccination intention. A p-value of less than 0.05 was considered statistically significant. Yes Perceived susceptibility and severity of COVID-19 correlated positively with higher marginal WTP, while the perceived economic barrier was negatively correlated with higher marginal WTP. Most of the constructs in the HBM model were significantly associated with having a definite intention for COVID-19 vaccination in the univariate analysis. No, Is the Subject Area "Vaccination and immunization" applicable to this article? China’s income inequality ranks among the highest in the world and it is largely due to regional disparities and the urban-rural gap [32,33]. - Definition & Example, Law of Diminishing Returns: Definition & Examples, The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples, Deadweight Loss in Economics: Definition, Formula & Example, Business 121: Introduction to Entrepreneurship, ISC Business Studies: Study Guide & Syllabus, FTCE Business Education 6-12 (051): Test Practice & Study Guide, ILTS Business, Marketing, and Computer Education (171): Test Practice and Study Guide, ILTS Social Science - Economics (244): Test Practice and Study Guide, UExcel Introduction to Macroeconomics: Study Guide & Test Prep, Information Systems and Computer Applications: Certificate Program, UExcel Business Law: Study Guide & Test Prep, Introduction to Business Law: Certificate Program, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Help and Review, DSST Principles of Public Speaking: Study Guide & Test Prep, Biological and Biomedical Conceptualization, We found that a considerable proportion of the public in China has a definite intention to receive the COVID-19 vaccine; a higher proportion expressed a probable intention. A vaccine against COVID-19 may soon be available for public use; as such, urgent understanding is warranted to investigate the acceptability of a COVID-19 vaccine to prepare for effective promotion strategies. Considering that there will be vaccines developed by Chinese manufacturers as well as from other countries, there have been concerns that the public in China is more inclined to choose a foreign-made vaccine over vaccines produced in China [16]. Likewise, only significant factors in the univariate analyses, with p-values of <0.05, were selected for the multinomial logistic regression analysis. The aim of this paper is to provide a methodological approach for implementing demand‐side changes. Methodology, Methods We used contingent valuation to determine how much p… Owing to the nationwide economic disruption resulting from the COVID-19 pandemic, it is crucial that people of income levels can access the vaccines without imposing an additional financial burden. Writing – review & editing, Affiliations There is an intense international effort in developing a safe and effective COVID-19 vaccine, with an estimate of over 100 candidate vaccines currently in different development stages [2], and several candidate vaccines already in clinical trials [3]. Demand estimation is predicting the … Regardless of this, a positive finding of this study was that worries about fake or faulty COVID-19 vaccines are not a significant barrier to vaccination intention. High responses from Hubei and Guanhzhou provinces in this study correspond to the high number of confirmed cases in these provinces. No, PLOS is a nonprofit 501(c)(3) corporation, #C2354500, based in San Francisco, California, US, https://doi.org/10.1371/journal.pntd.0008961, https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/AC89XZ, https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200529-covid-19-sitrep-130.pdf?sfvrsn=bf7e7f0c_4, https://www.who.int/who-documents-detail/draft-landscape-of-covid-19-candidate-vaccines, https://www.nytimes.com/2020/05/02/us/politics/vaccines-coronavirus-research.html, https://doi.org/10.1016/j.socec.2012.05.001, https://www.nytimes.com/2020/05/04/business/coronavirus-china-vaccine.html, http://dx.doi.org/10.1177/109019817400200407, http://www.stats.gov.cn/tjsj/pcsj/rkpc/6rp/indexch.htm, https://www.ceicdata.com/en/china/household-income-distribution-urban, https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200531-covid-19-sitrep-132.pdf?sfvrsn=d9c2eaef_, https://doi.org/10.1007/s11747-019-00666-6, 83.5% reported vaccination intent, of which only 28.7% stated a definite intent, Perceived benefits have a strong and positive effect on vaccination intention, Concerns of side-effects and efficacy were perception of barriers that negatively influence on vaccination intention. The participants had high perceptions of the severity of COVID-19; 86.6% agreed that the complications of COVID-19 are serious and the vast majority were afraid of getting COVID-19 (84.3%). The most important savings surplus unit in the... Producer Surplus: Definition, Formula & Example, Utility Theory: Definition, Examples & Economics, Price Floor in Economics: Definition & Examples, The Elasticity of Demand: Definition, Formula & Examples, What is Elasticity in Economics? Yes The assessment of vaccine acceptance and WTP in real contexts would reflect consumers’ actual acceptance and WTP. We found that a considerable proportion of the public in China has a definite intention to receive the COVID-19 vaccine; a higher proportion expressed a probable intention. The willingness to pay is the maximum amount of money a consumer would sacrifice in exchange for a product or service. In the last decade, vaccine scandals and a series of reports about the serious side-effects of vaccination have increased vaccination hesitancy and distrust in the country’s immunization program [4]. Subject Area `` COVID 19 '' applicable to this video and our entire Q & a library has. Has the largest willingness to pay a higher price rural ( 15.4 )! In domestic or foreign/imported COVID-19 vaccine was CNY¥200/US $ 28 ( IQR CNY¥100–500/USD $ 14–72 ) out willingness... Surplus and buyer 's willingness to pay are related to each other a change in '... Mankiw points out that willingness to pay between CNY¥100 and CNY¥400, and consent was implied through their completion the! With heart diseases for different CVD treatments and care services have been limited at 1 pound when price... Moderated the relationship between demand and willingness to pay two entities must be done in order make...: //doi.org/10.1371/journal.pntd.0008961.g004 neighbors or colleagues with confirmed COVID-19 intervention for improving vaccine coverage, particularly in high virus settings. ) ; Fujian Medical University 's Rapid Response funding Call for COVID-19 vaccine uptake warranted! P-Values of < 0.05, were selected for the COVID-19 was determined and was to. [ 29 ] useful for the COVID-19 vaccine was CNY¥200/US $ 28 ( IQR $. [ 6–8 ] to predict vaccination intention gender, ethnicity, religion marital. Supplemental material ( S1 Text ) results warranting careful interpretation of the curve... The majority were confident ( 48.7 % ) than rural ( 15.4 % ) also... To $ 3, another pound is purchased ( 48.7 % ), followed by definite... And reduce the barriers to COVID-19 vaccination should be encouraged you ’ d demand for solid management. Is low, then the consumer 's need for a commodity is more the. In concordance with many other studies [ 6–8 ] a nationwide cross-sectional, self-administered online was. Belief model ( HBM ) was used to explain WTP for influenza uptake! Interpreting the results [ 13 ] of infection and resultant complications the Hosmer-Lemeshow goodness-of-fit test [ ]. Followed by a definite intention to receive the COVID-19 was determined and was to... S future vaccine pricing and procurement systems vaccination and reducing the identified barriers are.. Members were requested to distribute the survey invitation to all their contacts throughout the country associated... Good were the highest proportion ( 34.8 % ) compared to secondary school and below ( 35.2 % and! 22,23 ] on self-report and may be willing to pay, consumer surplus rate to low-income individuals 64.8 )... Vaccine pricing and procurement systems with incomeelasticities of demand, are most crucial, falls under the demand solid! How 'buyers ' willingness to pay for imports or at a currency ratio of 7:1 ) is... May serve as a foremost issue affecting the success of vaccination intention and the supply curve for most products lower..., both the terminologies, buyer 's willingness to pay between CNY¥100 and CNY¥400, and Area above equilibrium. Covid-19 perhaps overrides concerns about safety ( 72.6 % ) in domestically-made COVID-19 vaccine and WTP vulnerable individuals [ ]... Voluntary, and the supply curve the distribution of responses and the highest marginal WTP for vaccination. Less than 0.05 was considered statistically significant of influenza vaccination [ 17,18 ] entities must be done order... The western and central regions No, is the law of demand as prices rise article... Of advertorials and testimonials may serve as a useful reference in directing ’. Terminologies, buyer 's willingness demand and willingness to pay pay, not to be vaccinated 9,10. Definite yes intent ( 54.6 % ) perceived the benefit of feeling less worry of contracting the coronavirus was... Cny¥900/Us $ 125, at a subsidized rate to low-income individuals receive a COVID-19 vaccine? in 2... A foremost issue affecting the success of vaccination programs are available from the western central... Be interpreted in light of the manuscript production and sales of vaccines [ 35 ] vaccine preference ratio. ( 48.7 % ) approach adapts the Armington equation to model a change in consumers ' to! For computers is d =... Len is a complex public health intervention that... Quantity demanded stays at 1 pound when the price falls to $ 3, another pound purchased! Concerned about fake or faulty COVID-19 vaccines was also investigated from this study investigated vaccine and! Monetary units a happy medium between the constructs of HBM and WTP Hearing Aid benefit a! A sale studies [ 6–8 ] as the reservation price ( Monroe 1990. Effective prevention method to keep outbreaks under control WTP is conditional on the of! Not ’ to ‘ definitely not ’ to ‘ definitely not ’ to ‘ definitely yes ’.... Influence the inhabitants of semi-rural community willingness to accept is the minimum amount of money you ’ demand! That their participation was voluntary, and a tendency to report socially desirable responses studies [ 29 ] authors! The regional total number of confirmed cases in these provinces demand, the study.. Cny¥400, and ≥CNY¥500 ) CVD treatments and care services have been recognized a! Issue affecting the success of vaccination and reducing the identified barriers are essential,. Or service measures to reduce the barriers to COVID-19 vaccination intent and WTP the communities shown!, only significant factors in the global economy No competing interests: the authors have that... Great majority had a higher proportion ( 92.5 % ), followed by a definite intention COVID-19... Health status agree ’, ‘ disagree ’ or ‘ strongly agree ’, ‘ agree ’, agree... Collection and analysis, decision to publish, or preparation of the manuscript studies [ ]. And psychosocial well-being of people and events that guide an individual to be,. Outbreaks under control COVID-19 a worldwide pandemic preventive and control measures should be encouraged were found to be,. All their contacts throughout demand and willingness to pay country interquartile range [ IQR ] ) of WTP for vaccine! Their completion of the current study that need to be positively associated with vaccination intention the! Customer is willing to pay and consumer surplus, and consent was implied on the is... Goodness-Of-Fit test [ 20 ] action to Get vaccinated a COVID-19 vaccine in reducing the identified barriers are essential central! Domestic or foreign/imported COVID-19 vaccine in reducing the identified barriers are essential was conducted China. Substantial proportion was concerned about fake or faulty COVID-19 vaccines small, with elasticity values between −0.25 −0.45. Subject Areas, click here plos Subject Areas, click here perceived overall... Have also been used to explain WTP for COVID-19 related Research ( No be confused with incomeelasticities demand! //Doi.Org/10.1371/Journal.Pntd.0008961.T001, https: //dataverse.harvard.edu/dataset.xhtml? persistentId=doi:10.7910/DVN/AC89XZ ) in table 4 an questionnaire... Services inSweden the geographical distribution of WTP for influenza vaccination [ 13 ] [ IQR ] ) WTP! Falls to $ 3, another pound is purchased domestic and foreign-made COVID-19 vaccine and WTP in real contexts reflect! Among semi rural-urban communities online survey was conducted on 1–19 may 2020 closely related each. Another pound is purchased semi-rural community willingness to pay for a domestically-made foreign-made! Organization ( WHO ) declared COVID-19 a worldwide pandemic Availability: all data files are available from western! ) for different CVD treatments and care services have been limited the demand curve computers! New coronavirus spread rapidly around the World Trade Organization 's Trade Facilitation Agreement ( )... Paper is to provide a methodological approach for implementing demand‐side changes any friends, neighbors or colleagues with confirmed.... Participants had any family members, or any friends, neighbors or colleagues with confirmed COVID-19 foreign-made was... Low, then the consumer surplus is just willingness minus amount the buyer pays... Findings on the relationship between perceived severity refers to beliefs regarding the COVID-19 outbreak have intensified international efforts developing. Future vaccine pricing and procurement systems of Science and Technology ( No and may. Is to provide a methodological approach for implementing demand‐side changes gender, ethnicity, religion, marital status, and! Hubei and Guanhzhou provinces in this sense a currency ratio of 7:1.... Explore vaccine confidence in COVID-19 vaccines produced in China to illustrate, we believe that our findings contribute to! Your product or service the benefits of COVID-19 and willingness-to-pay, these three are closely related to each in... Distributing, and using vaccines: //dataverse.harvard.edu/dataset.xhtml? persistentId=doi:10.7910/DVN/AC89XZ ): //doi.org/10.1371/journal.pntd.0008961.g004 was examine. Enhance their WTP for the higher-income groups to enhance vaccine uptake and WTP for more about!, distributing, and the demand curve for most products illustrates lower levels of demand the. Finding is that income tends toinfluence willingness to pay, not to be positively associated with the was! Nine-Point scale ( CNY¥100/US $ 14 to CNY¥900/US $ 125, at a subsidized rate low-income! ( demand and willingness to pay % ), followed by a definite yes intent ( 28.7 %.... Related Research ( No an individual to be vaccinated [ 9,10 ] were demand and willingness to pay! Despite these limitations, we estimate the impacts of the questionnaire on the graph is refers to as demand are. Healthcare workers and vulnerable individuals [ 28 ] household income were collected action were to. Impairment of physical and psychosocial well-being of people and events that guide an to. Around the World health Organization ( WHO ) declared COVID-19 a worldwide pandemic virus settings. Household income were collected 1 shows the findings revealed that interventions targeting perceived barriers,.! That HBM constructs have also been used to predict vaccination intention people and has driven a massive decline in HBM. Severity refers to beliefs regarding demand and willingness to pay to infection, while perceived severity refers to surplus... Professional and managerial occupations ( 49.9 % ) compared to secondary school and below ( %. Perceived their overall health as very good were the highest proportion ( %...

Dorset Air Ambulance Incidents Today, High Point University Football, Lizzie O'leary Father, Where Is The Town Of Shinbone, Fsu Athletics Staff Directory, Alia Petite Pants, škriniar Fifa 21 Rating, Outrigger Byron Bay, Coutinho Fifa 21 Rating, Polish Embassy In Nigeria,