File talk:Giffenen.svg

FUBAR diagram

This diagram is FUBAR. Where it was being used, commentors correctly noted:

indifference curves must not intersect, or else the axiom of transitivity would be violated. In addition, the decomposition budget line (dashed blue line) should be parallel to the new budget line with the price reduction (line segment MP) and tangent to the indifference curve I_o. The decomposition budget line cannot intersect the indifference curve at two places.

Rather than keeping a diagram with multiple errors, and parenthetically noting those errors in the article, this image should be removed. (A correct diagram would be welcome.) —SlamDiego_←T 18:01, 10 April 2009 (UTC)