What is the relationship between the

price of Model Ts and the number

produced? How do you account

for this relationship?

Relationship between the price of Model Ts and the number produced:

The relationship between the number produced and supplied and the price of a model follows quite a simple graph. The more the quantity, the lower amount of money is required per object as compared to when lower amounts of that model are bought.

This is due to the concept of bulk buying. Since the seller is ensured that he will be getting income through quite a lot of his products, he is willing to reduce the amount costed per object as it is security for him of his goods being bought off and the buyer gets a good deal too.