How do elasticities of supply and demand affect DWL?

Because the elasticities of supply and demand measure how much market participants respond to market conditions, larger elasticities imply larger DW losses.

Explanation:

As a tax grows larger, it distorts incentives more, and its DW loss grows larger. Because a tax reduces the size of the market, however, tax revenue does not continually increase. It first rises with the size of a tax, but if the tax gets large enough, tax revenue starts to fall.