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    Suppose the U.S. dollar price of a British pound is $1.50; t

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    1) Suppose the U.S. dollar price of a British pound is $1.50; the dollar price of a euro is $1; a hotel room in London, England, costs 120 British pounds; and a comparable hotel room in Hanover, Germany, costs 200 euro.

    a. Which hotel room is cheaper for a U.S. tourist?
    b. What is the exchange rate between the euro and the British pound?

    2) Suppose the U.S. dollar price of the Canadian dollar is $.75. How many Canadian dollars will it take to buy a set of dishes selling for $60 in Detroit, Michigan?

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    https://brainmass.com/economics/exchange-rates/suppose-usa-dollar-price-british-pound-320740

    Solution Summary

    The solution provides detailed calculations and explanations for the problem.

    $2.19