How does elasticity of demand influence the deadweight loss?

The elasticity of demand significantly affects the deadweight loss associated with market inefficiencies, such as taxes or price controls. When demand is elastic, a small change in price leads to a large change in quantity demanded, resulting in a greater deadweight loss because consumers are more responsive to price changes. Conversely, when demand is inelastic, consumers are less sensitive to price changes, leading to a smaller deadweight loss as the quantity demanded remains relatively stable despite price fluctuations. Ultimately, the greater the elasticity of demand, the larger the potential deadweight loss in a market distortion.