you're traveling in ireland and are thinking about buying a new digital camera. you've decided you'd be willing to pay $150 for a new camera, but cameras in ireland are all priced in euros. if the exchange rate is 0.83 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? a. 124.50 euros b. 174.70 euros c. 180.72 euros d. 128.65 euros e. 120.35 euros

A. 124.50 Euros

Explanation:

Willingness to pay is can be considered as the consumers’ intent to pay for the product. More deeply, it is the maximum price or less than that maximum price that the consumers will pay and buy that product.  

Now, if you have some money and you have willingness to pay for 150$ to buy new camera in Ireland but the case is that in Ireland, the currency is euro not dollar, so you will have to exchange some dollars to euro. You know that 1 dollar equals 0.83 euros and you just want to pay maximum 150 dollars for the camera. After all, it will equal to ==> 150*0.83=124.5 euros. As a result, your willingness to pay for the camera in Ireland will equal to 124.5 euros.

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