How much deadweight loss a tax causes depends on all of the following except:

Question

Quizplus · Accepted Answer

The deadweight loss of a tax does not depend on who the tax is imposed upon (whether it's the buyers or the sellers) because the market outcome will be the same regardless of this factor. The tax incidence, or how the burden of the tax is divided between buyers and sellers, depends on the relative elasticities of supply and demand, not on who officially pays the tax.

How Much Deadweight Loss a Tax Causes Depends on All