Apr 2nd 2008 9:44PM Please go study your economics. Blizzard manages supply, not demand. The only prices they set are at the vendors.
Auction House buyouts are are set by the person auctioning an item. Some people manipulate the AH market by posting outrageous prices, such ash 75G for a stack of wool, to manipulate the average price for an item as calculated by programs like Auctioneer; they know this works because people are letting the mod think for them - an item is expensive if acutioneer says so.
Similarly, people manipulate supply by buying all of an item and jack up the buyout or limiting supply.
But there is an easy solution - don't buy the stuff!!!