Answer
Greater elasticity of supply and demand cause greater deadweight loss. Naturally, this makes sense, when a tax is placed on a product and you have can find substitutes you would rather demand at point that is inefficient and demand fewer units. Suppliers would also sell less because of the buyers' inability to reach equilibrium.
Work Step by Step
Think through the process. Taxes place a wedge on supply and demand graph, and this tax that is imposed distorts the market as inefficiency cannot be easily reached due to higher pricing and higher production costs.
