How does the introduction of a tax on a good affect market efficiency and create deadweight loss?

When a tax is introduced on a good, it raises the price for consumers and lowers the price received by producers. This change can lead to fewer transactions in the market since some buyers may decide not to purchase the good at the higher price. As a result, the quantity of the good sold decreases, which means that both consumers and producers are not benefiting as much as they could without the tax. This loss in potential transactions creates what is called deadweight loss, which is the loss of economic efficiency that occurs when the equilibrium outcome is not achieved. For example, if a tax is placed on soda, some people who would have bought soda at a lower price might choose not to buy it at all, leading to less soda being sold and a loss of enjoyment for both consumers and sellers.