Which of the following statements accurately describe the relationship between tax burden and deadweight loss? Select all that apply.

The tax burden refers to the cost that individuals and businesses bear due to taxes, while deadweight loss is the economic loss that occurs when a tax causes a reduction in the quantity of goods traded in the market. When a tax is imposed, it can lead to higher prices for consumers and lower prices for producers, which can discourage buying and selling. This decrease in market activity creates a deadweight loss because it results in fewer transactions than would happen without the tax. For example, if a tax on a popular product makes it too expensive for some buyers, they may choose not to purchase it, leading to a loss of sales that could have benefited both the seller and the buyer. Thus, a higher tax burden often leads to greater deadweight loss, as it distorts market behavior and reduces overall economic efficiency.