The supply of lawyers doesn't quite follow the simple market relationship either. The study and practice of law are still associated with some prestige, and the high cost of legal services leads many to believe that they'll quickly pay back their inflated student debt.

There definitely is regulatory capture going on. Small, more affordable schools are in a real bind over having to meet stringent and arbitrary accreditation criteria, but that doesn't affect the number of lawyers because students are willing to pay anything to become a lawyer anyway.