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COMPLEMENT-IN-CONSUMPTION: One of two goods that are consumed together to provide satisfaction -- that is, the goods are used jointly to satisfy wants and needs. A complement good is one of two alternatives falling within the other prices determinant of demand. The other is a substitute good. An increase in the price of one complement good causes a decrease in demand for the other. A complement good has a negative cross price elasticity. When the terms complements or complement goods are used, they typically means complement-in-consumption (compare this with complement-in-production). Examples of complement goods are golf clubs and golf balls; hamburgers and french fries; and cars and gasoline. In each case, the two goods "go together." People seldom use or consume one without the other.
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LAW OF DIMINISHING MARGINAL UTILITY A principle stating that as the quantity of a good consumed increases, eventually each additional unit of the good provides less additional utility--that is, marginal utility decreases. Each subsequent unit of a good is valued less than the previous one. The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand.
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GREEN LOGIGUIN
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Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors looking to buy either a three-hole paper punch or decorative picture frames. Be on the lookout for celebrities who speak directly to you through your television.
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Two and a half gallons of oil are needed to produce one automobile tire.
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"No task is a long one but the task on which one dare not start: It becomes a nightmare. " -- Charles Baudelaire, poet-critic
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AACT
American Assocation of Commodity Traders
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