Which of the Following Occurs in a CIF Agreement

question 59

Multiple Choice

Which of the following occurs in a CIF agreement?

• A) Risk of loss occurs when goods are identified to the contract.
• B) Risk of loss occurs when the goods are delivered to the buyer.
• C) Risk of loss remains with the seller for 5 days after the sale.
• D) Risk of loss remains with the seller for 5 days before the sale.
• E) The seller puts the goods in possession of a carrier before the risk passes to the buyer.

---

Definitions:

Price Elasticity

An indicator for the degree to which the supply or demand level of a good adjusts following a change in its price.

Midpoint Method

A technique used in economics to measure the elasticity of demand or supply, which calculates the percentage change between two points by dividing the difference by the average of those points.

Luxury

A luxury item is a good or service that is considered to be of high quality, often resulting in higher prices and perceived as non-essential but desirable if one has the means.

Demand

The consumer's desire and willingness to pay for a good or service, influenced by price, income, tastes, and expectations.