Prices falling driving lower demand makes a lot of sense for things that people don't need. But for things like the rent, food, and healthcare that have been going nowhere but up for decades, there is obviously some inelasticity of demand in play. Expensive items that people often need like cars will see pent up demand if prices stay high for a long time. That's one reason why EVs don't sell well in the US anymore, because the people who can afford to spend $60000 on a huge SUV and want it to be an EV have mostly already done that. Meanwhile, the rest of us are broke!