Social loss caused by moral hazard With insurance,the effective extent of price per cheeseburger falls price sensitivity from Pu to Pi,and his consumption spikes from Qu to Q. A social Point A is the socially efficient loss extent equilibrium,while Point B is of price: :distortion the outcome with insurance. ... 。 Extra cheeseburgers B consumed between points Qu and Q result in more costs Dc than they are worth. Qu Q Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Social loss caused by moral hazard • With insurance, the effective price per cheeseburger falls from PU to PI , and his consumption spikes from QU to QI . • Point A is the socially efficient equilibrium, while Point B is the outcome with insurance. • Extra cheeseburgers consumed between points QU and QI result in more costs than they are worth