What is the primary effect of a tax on a market in terms of deadweight loss?

When a tax is placed on a market, it can lead to a situation called deadweight loss, which occurs when the total economic efficiency is reduced. This happens because the tax changes the prices for buyers and sellers, making some transactions that would have happened without the tax no longer occur. For example, if a tax is added to a popular snack, some people might decide not to buy it because it’s now too expensive, and the seller might sell fewer snacks because they receive less money after the tax. As a result, both buyers and sellers lose out on the benefits of trade that they would have enjoyed without the tax. Overall, the primary effect of a tax is that it creates a gap between what buyers are willing to pay and what sellers are willing to accept, leading to less overall economic activity.