Final answer:
The two types of fixed-price contracts used in acquiring commercial items are Firm-fixed-price and fixed-price with economic price adjustment, which includes provisions for adjusting the price according to inflation.
Step-by-step explanation:
The two types of fixed-price contracts used when acquiring commercial items are a) Firm-fixed-price and fixed-price with economic price adjustment. The firm-fixed-price contract is a type of agreement where the price for goods or services is set at the outset and is not subject to any changes due to the cost of inputs or labor. The fixed-price with economic price adjustment contract, on the other hand, has a provision that allows for the price to be adjusted in relation to certain economic conditions, such as changes in inflation. This mechanism ensures that the real price of the contract aligns with the market conditions and does not disadvantage either party due to unexpected swings in inflation.
Businesses lean towards contracts with automatic adjustments for inflation because they provide a level of protection against fluctuating costs, ensuring that the selling price reflects the current economic situation. From a buyer's standpoint, such contracts safeguard them from overpaying if inflation tends to be lower than anticipated.