▁when ▁the ▁demand ▁curve ▁is ▁relatively ▁in el astic , ▁dead weight ▁loss ▁from ▁the ▁tax ▁is ▁smaller , ▁comparing ▁to ▁more ▁el astic ▁demand ▁curve . ▁ ▁A ▁tax ▁cause ▁a ▁dead weight ▁loss ▁because ▁it ▁causes ▁buy ers ▁and ▁sell ers ▁to ▁change ▁their ▁behavior . ▁Bu y ers ▁tend ▁to ▁consume ▁less ▁when ▁the ▁tax ▁ra ises ▁the ▁price . ▁When ▁the ▁tax ▁low ers ▁the ▁price ▁received ▁by ▁sell ers , ▁they ▁in ▁turn ▁produce ▁less . ▁As ▁a ▁result , ▁the ▁overall ▁size ▁of ▁the ▁market ▁decre ases ▁below ▁the ▁optim um ▁equilibrium . ▁The ▁el astic ities ▁of ▁supply ▁and ▁demand ▁determine ▁to ▁what ▁extent ▁the ▁tax ▁dist ort s ▁the ▁market ▁outcome . ▁As ▁the ▁el astic ities ▁of ▁supply ▁and ▁demand ▁increase , ▁so ▁does ▁the ▁dead weight ▁loss ▁resulting ▁from ▁a ▁tax . ▁ ▁How ▁dead weight ▁loss ▁changes ▁as ▁tax es ▁vary ▁ ▁Tax es ▁may ▁be ▁changed ▁by ▁the ▁government ▁or ▁polic ym akers ▁at ▁different ▁levels . ▁For ▁instance , ▁when ▁a ▁low ▁tax ▁is ▁lev ied , ▁the ▁dead weight ▁loss ▁is ▁also ▁small ▁( comp ared ▁to ▁a ▁medium ▁or ▁high ▁tax ). ▁An ▁important ▁consideration ▁is ▁that ▁the ▁dead weight ▁loss ▁resulting ▁from ▁a ▁tax ▁increases ▁more ▁quickly ▁than ▁the ▁tax ▁itself ; ▁the ▁area ▁of ▁the ▁triangle ▁representing ▁the ▁dead weight ▁loss ▁is ▁calculated ▁using ▁the ▁area ▁( square ) ▁of ▁its ▁dimension . ▁Where ▁a ▁tax ▁increases ▁linear ly , ▁the ▁dead weight ▁loss ▁increases ▁as