How does elasticity of demand influence deadweight loss?

The elasticity of demand significantly influences deadweight loss in a market. When demand is elastic, a price increase leads to a proportionally larger decrease in quantity demanded, resulting in a greater deadweight loss as consumer surplus declines sharply. Conversely, if demand is inelastic, quantity demanded changes little with price fluctuations, leading to a smaller deadweight loss since consumers continue to purchase despite higher prices. Therefore, more elastic demand conditions exacerbate the efficiency losses associated with market distortions, such as taxes or monopolistic pricing.