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Microeconomic theory (for whatever it's worth) explains this tidily: unless demand is perfectly inelastic, reducing unit costs will always increase demand at eq

Microeconomic theory (for whatever it's worth) explains this tidily: unless demand is perfectly inelastic, reducing unit costs will always increase demand at equilibrium. Demand is almost never perfectly inelastic.

sitkack 4y ago
You should re-read the wiki page on Jevon's Paradox.
- aradox66 4y ago
  You're right, something was bugging me about my analysis lol. What matters is the "ratio" of efficiency is increase to the amount of demand elasticity.