Final answer:
Imposing a tax on a market with both inelastic demand and supply would increase the deadweight loss due to a lack of flexibility in adjusting quantities supplied and demanded, leading to greater inefficiency.
Step-by-step explanation:
The question involves understanding how a tax would affect markets characterized by different elasticities of demand and supply. If the market for gluten-free bread, which is characterized by an inelastic demand and an elastic supply, were to have an inelastic supply instead, the tax burden would shift more towards the sellers as they have fewer alternatives to adjust their production. This change in supply elasticity would typically lead to an increase in deadweight loss, because the market is less able to adjust to the tax, resulting in greater inefficiency. When both the demand and supply are inelastic, taxes do not greatly affect the equilibrium quantity, but they do increase the prices more significantly and lead to a less efficient distribution of resources.