TEF.20 Deadweight loss is important to consider when analyzing a tax because: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer, a it represents inefficiency caused by the tax. b it represent gains in efficiency created by the tax. it causes more resources to be inefficiently allocated toward the production of the taxed good or service. d it helps determine whether the consumer or producer of the taxed good or service pays more of the tax