That’s how it works in manufacturing. The more of something you make, the more economies of scale kick in and the lower the cost per item.

Of course, a depressing number of economists seem to think this doesn’t exist, because obviously the market will be allowed to collude to raise prices on in demand items, even if the price per item is falling.

You could also note that supply and demand are just two of several thousand factors, and any analysis that pretends they are the only two factors is going to be woefully disconnected from reality.