Complementary Good - Perfect Complement

A perfect complement is a good that has to be consumed with another good. The indifference curve of a perfect complement will exhibit a right angle, as illustrated by the figure at the right. Few goods in the real world will behave as perfect complements. One example is a left shoe and a right; shoes are naturally sold in pairs, and the ratio between sales of left and right shoes will never shift noticeably from 1:1 - even if, for example, someone is missing a leg and buys just one shoe.

The degree of complementarity, however, does not have to be mutual; it can be measured by cross price elasticity of demand. In the case of video games, a specific video game (the complement good) has to be consumed with a video game console (the base good). It does not work the other way: a video game console does not have to be consumed with that game.

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Famous quotes containing the words perfect and/or complement:

    You are disdainful and magnificent—
    Your perfect body and your pompous gait,
    Your dark eyes flashing solemnly with hate,
    Helene Johnson (b. 1907)

    A healthy man, indeed, is the complement of the seasons, and in winter, summer is in his heart.
    Henry David Thoreau (1817–1862)