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Also if they knew they can study items to learn crafting cheaper way then they would buy items for that purpose.

If people were aware that selling mats give more profit then they would sell those mats instead of crafting items. That's why with higher tiers it starts to change and market looks different as knowledge of players changes.

They are not aware they can get more money from selling mats than from crafting items that they trying to sell. People spend their mats on crafting to learn, unaware they can study them instead of selling or just buy them and study. It is: people are unaware that crafting items is not profitable and that studying items teaches you more. The reason the market on low tiers is like we have it is rather simple, but nothing you would expect.