RICKC - I understand and agree with your observation about demand and supply: that is what I meant in my original posting by "I guess there is a type of logic to it an economics teacher would point out . . . "
Except . . . the demand also shrank when I bought. When I purchased, both the supply of units for sale and the number of people interesting in buying one shrank by one. I think a lot of vendors could shoot themselves in the foot with dynamic price readjustment algorithms like this: what Trainz algorithm did in raising the price of their remaining unit is make themselves less competitive against all those vendors out there who did not sell one that day and kept their prices steady.
The important thing though, is that I got my loco (well, when it arrives today or tomorrow I will get it) at 20% off list: pays to really shop around.