Prices on low item level materials are perfectly fine. People are not farming this stuff so cooper ore may be more expensive than ghost iron ore is. These items are that expensive, because some players training for example tailoring, prefer to spend 5-15k on low cloths instead of just wasting an hour or two farming those. This seems just so obvious.
The problem with economy or the prices that I see are stupid people who lower the prices of some items. Like when I see certain item being sold for 3k gold, I post mine for 2998 and some guy posts 15 items for 500g, minute later people post same stuff for 499 and he is surprised that his items did not sell..
Gold is very easily obtainable on the realm and people will sooner or later buy anything they need. Enchants, glyphs, gems, whatever. If players selling it get smarter they can actually make much more gold by putting higher prices on AH and compete by undercutting eachother by just a little.