Arrange the following steps in the correct order to understand the impact of a tax on market efficiency and its incidence based on elasticity: A. Determine the elasticities of supply and demand. B. Analyze how the tax burden is shared between consumers and producers. C. Assess the resulting deadweight loss in the market. D. Evaluate the overall market outcomes from government intervention.

To understand the impact of a tax on market efficiency and its incidence based on elasticity, you should first determine the elasticities of supply and demand. This step is crucial because it helps you understand how sensitive consumers and producers are to price changes. Next, you analyze how the tax burden is shared between consumers and producers, as the elasticity will affect who pays more of the tax. After that, you assess the resulting deadweight loss in the market, which shows how much economic efficiency is lost due to the tax. Finally, you evaluate the overall market outcomes from government intervention, allowing you to see the broader effects of the tax on the economy.