How does an increase in taxation on a good with elastic demand affect consumer surplus and deadweight loss?

When the government increases taxes on a good that has elastic demand, it means that consumers are very sensitive to price changes. As the price of the good goes up due to the tax, many consumers may choose to buy less of it or find alternatives. This decrease in quantity demanded leads to a reduction in consumer surplus, which is the benefit consumers get from buying a product at a lower price than they are willing to pay. For example, if a popular snack increases in price because of a tax, some people might stop buying it altogether or switch to a cheaper brand. Additionally, the tax can create deadweight loss, which is the loss of economic efficiency that occurs when the quantity of a good traded in the market is reduced, meaning total welfare is not maximized.