When the price of a good is high, the correct statement is that the demand is less elastic.
The elasticity of demand refers to the responsiveness of quantity demanded to changes in price.
When demand is elastic, it means that a small change in price leads to a relatively larger change in quantity demanded.
On the other hand, when demand is inelastic, it means that a change in price has a relatively smaller impact on the quantity demanded.
When the price of a good is high, it indicates that the price is relatively higher compared to the average price level.
In this case, consumers may be more sensitive to price changes and may be more likely to reduce their demand for the good.
However, if the demand for the good is less responsive to price changes, it suggests that the demand is less elastic.
Therefore, when the price of a good is high, the correct statement is that the demand is less elastic.
This implies that a change in price will have a relatively smaller impact on the quantity demanded.