Arrange the following steps in the correct order regarding the impact of a tax on a good that is already underproduced: A) Tax is imposed on the good, B) The quantity produced decreases further, C) The market experiences increased deadweight loss, D) Allocative efficiency is further reduced.

When a tax is imposed on a good that is already underproduced, the first step is A, where the tax is applied to the good. This leads to B, as the quantity produced decreases even more because producers may find it less profitable to make the good. As production drops, the market experiences C, which means there is a greater deadweight loss, representing the loss of economic efficiency. Finally, D occurs because the allocative efficiency, which is how well resources are distributed according to consumer preferences, is further reduced due to the tax. For example, if a tax is placed on a specific type of renewable energy, fewer companies may produce it, leading to higher prices and less availability for consumers.