The tax burden on the seller in the market will be the highest when the goods?

If both supply and demand are elastic
If both supply and demand are not elastic
If demand is inelastic but supply is elastic
If demand is elastic but supply is inelastic

The correct answer is: C. If demand is inelastic but supply is elastic.

When demand is inelastic, a change in price will have a smaller effect on the quantity demanded. This means that if the government imposes a tax on a good with inelastic demand, the sellers will be able to pass on most of the tax to consumers in the form of higher prices.

When supply is elastic, a change in price will have a larger effect on the quantity supplied. This means that if the government imposes a tax on a good with elastic supply, the sellers will not be able to pass on as much of the tax to consumers in the form of higher prices.

Here is a diagram that illustrates the effect of a tax on a good with inelastic demand:

[Diagram of a demand curve with an inelastic demand curve and a tax imposed on the sellers. The tax causes the price to increase from P1 to P2, but the quantity demanded only decreases from Q1 to Q2.]

As you can see, the price increases by a larger amount than the quantity demanded decreases. This is because the sellers are able to pass on most of the tax to consumers.

Here is a diagram that illustrates the effect of a tax on a good with elastic demand:

[Diagram of a demand curve with an elastic demand curve and a tax imposed on the sellers. The tax causes the price to increase from P1 to P2, but the quantity demanded decreases from Q1 to Q3.]

As you can see, the price increases by a smaller amount than the quantity demanded decreases. This is because the sellers are not able to pass on as much of the tax to consumers.