HardwareCentral interviews AMD talking about their upcoming K7 processors. Here is the answer they received to their question about pricing:

Unfortunately, I can't get into specifics on pricing. The rumors of a $2K K7 are just that, rumors. You should see high-end, enthusiast PCs featuring the K7 available this summer, so you should be able to guesstimate what price points the systems will most likely be at.