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

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.