Let the book's price be x. The statement 'costs \$1 and a half of the price' means x = 1 + x/2. Solving: x - x/2 = 1, so x/2 = 1, giving x = 2. Option A (\$2.50) incorrectly adds $1.50 to $1, and Option D (\$1.50) misses that 'half the price' refers to the unknown total, not half of \$1.