The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal.

The demand for bread is typically more inelastic than the demand for donuts because bread is considered a basic staple food, while donuts are more of a luxury or non-essential item. Inelastic demand means consumers are less sensitive to price changes, so a tax on bread would likely result in a smaller deadweight loss compared to the same tax on donuts, as consumers would continue to buy bread despite the price increase, leading to less distortion in the market.