When a tax is imposed on a good, the financial responsibility is typically shared between consumers and producers, leading to a reduction in market efficiency known as ____. This inefficiency occurs because the equilibrium outcome is not achieved, causing a loss in total welfare.

When a tax is placed on a good, the cost is often split between consumers and producers, which leads to a situation called deadweight loss. This happens because the tax increases the price consumers pay while lowering the price producers receive, causing fewer transactions to happen than would occur without the tax. As a result, some buyers who would have purchased the good at a lower price no longer buy it, and some sellers who would have sold it at a higher price no longer sell it. For example, if a tax raises the price of a popular snack, fewer people might buy it, and some sellers might decide not to sell it at all. This reduction in trade means that both consumer satisfaction and producer profits decrease, leading to a loss of overall economic welfare.