The Land Ordinance of 1785 was adopted by the United States Congress of the Confederation on May 20, 1785. It set up a standardized system whereby settlers could purchase title to farmland in the undeveloped west. Congress at the time did not have the power to raise revenue by direct taxation, so land sales provided an important revenue stream. The Ordinance set up a survey system that eventually covered over 3/4 of the area of the continental United States.
The earlier Ordinance of 1784 was a resolution written by Thomas Jefferson calling for Congress to take action. The land west of the Appalachian Mountains, north of the Ohio River, and east of the Mississippi River was to be divided into ten separate states. However, the 1784 resolution did not define the mechanism by which the land would become states, or how the territories would be governed or settled before they became states. The Ordinance of 1785 put the 1784 resolution in operation by providing a mechanism for selling and settling the land, while the Northwest Ordinance of 1787 addressed political needs.
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which means automation of production, so when you will have mass production at low cost it will definitely result in a decrease of product cost.
This shall consequently lead to an increase of the quantities of product Z produced because, the extra capital that comes from saving on the production costs shall be used to produce more goods.
Since production shall have not cost any extra capital, the price shall remain constant.
