"With more air being sucked into the intake the more fuel the engine will use because of the computer making the nessisary changes to match the air to fuel ratio via all the sensors. Otherwise your engine would run far to lean causing a power lose not any gain and thats how the K & N air filters are promoted anyway, more power. They say nothing about better fuel economy."
I'm fully aware of how an internal combustion engine functions.
As you know, another way to get more air into the engine is to push the gas pedal down harder.
You seemed confused by the economy loss, and so am I considering my full cold air intake with K&N cone filter has caused me a loss of 1mpg if that, and a 5HP gain. This is with hard driving. I also keep a log book of exactly how much fuel I use.
As far as I know, experiencing a loss of 16mpg from an air filter is almost impossible. If you were really using that much more air and burning that much more fuel, you would have gained at least 20+ Horsepower to lose 16mpg. You Corolla would have been a rocket.
Maybe the difference was from a differrent driver, maybe you drove faster on the highway, maybe you had some unrelated mechanical problem, but anyway, as long as your car is doing good now, I guess it doesn't make a difference to you, just know that that is not normal.
Chris