If the cost of stuff goes down, people will consume more stuff.
But let's say the cost of Y (in electricity or money) drops 25%. If that makes people consume 60% more Y, then spending rises. But if it only makes people consume 15% more Y, then spending drops. Both results are plausible.
There's no mathematical reason to assume the demand increase is bigger than the price drop.
If I could suddenly make each gallon of household water use go 10x as far, I'd do somewhere between 1-2x as much stuff with water as before. This would mean I'm only consuming 10-20% as much water as before. Would you be different? Again just household use, don't try to stretch the premise too far.
But let's say the cost of Y (in electricity or money) drops 25%. If that makes people consume 60% more Y, then spending rises. But if it only makes people consume 15% more Y, then spending drops. Both results are plausible.
There's no mathematical reason to assume the demand increase is bigger than the price drop.
If I could suddenly make each gallon of household water use go 10x as far, I'd do somewhere between 1-2x as much stuff with water as before. This would mean I'm only consuming 10-20% as much water as before. Would you be different? Again just household use, don't try to stretch the premise too far.