Varying price distortion and price sensitivity (a) (b) $ Priceeit price tivit Pu Pr tiny huge social social loss Less price i distortion loss oneter distortion Pr B P B C In Figure A,price distortion and price sensitivity are both quite high. Insured individuals bear little of the cost of their heart attack treatments, and as they are quite price-sensitive they respond with more frequent trips to the local burger joint.This results in a large social loss. Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Varying price distortion and price sensitivity In Figure A, price distortion and price sensitivity are both quite high. Insured individuals bear little of the cost of their heart attack treatments, and as they are quite price-sensitive they respond with more frequent trips to the local burger joint. This results in a large social loss