Which of the Following Is Not an Example of a Contingency

question 55

Multiple Choice

Which of the following is not an example of a contingency element of a long-term contract?

• A)Initial price.
• B)Price-adjustment mechanisms.
• C)Delivery dates and times.
• D)Supplier performance improvement.
• E)Evergreen, penalty, and escape clauses.

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Definitions:

Midpoint Formula

A method used in economics to calculate the percentage change in quantity demanded or supplied, given two points, by dividing the change by the midpoint between the two points.

Price Elasticity

An economic concept indicating the responsiveness of the quantity demanded of a product to changes in its price, with high elasticity indicating greater sensitivity.

Foreign Travel

The activity of traveling outside one's home country for leisure, business, or other purposes.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.