Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if the:

• A. price of the book is greater than her willingness to pay
• B. price of the book is less than or equal to her willingness to pay
• C. consumer surplus is negative
• D. total cost of production is less than the price

Answer: (B)

Verified step by step guidance

1. Understand the concept of willingness to pay (WTP), which is the maximum amount a consumer is ready to pay for a good or service.
2. Recognize that from the economic perspective, a consumer will buy a good if the price they have to pay is less than or equal to their willingness to pay, ensuring they gain some benefit or surplus.
3. Recall that consumer surplus is defined as the difference between willingness to pay and the actual price paid: \(\text{Consumer Surplus} = \text{WTP} - \text{Price}\).
4. Note that if the price is greater than the willingness to pay, consumer surplus becomes negative, meaning the consumer would not buy the good as it would make them worse off.
5. Therefore, the correct condition for Mia to buy the book is that the price of the book is less than or equal to her willingness to pay.