Which brings us back to our trusty friend, deflation. Remember we are told by economist that when the price of something drops, sales will slow down since the price of the item will be less expensive than it is today. If this is indeed true, then why does almost everyone over the age of 6 have a smartphone? Didn't we just cover the fact that as prices drop, growth (sales) take off? It seems the economists have it backwards. What is going on here?
Actually no economist will tell you that. It is even called the law of demand. If the price falls, the quantity demanded will increase.
There is more controversy with changes to the aggregate price level, that is indeed inflation or deflation, which has different consequences than changes to the price of single goods.