Naturally, you don’t want to spend tons of money building new equipment for a short-term shortage that may be over by the time the new equipment comes on line... but is there any move to increase capacity?Sure! Easy!
Economics 101. (Let the price float, which is essentially what the online auctions are doing. You can buy all the ammo you want of any caliber right now -- it just won't be cheap.)
Large retailers are mindful of being accused of price gouging, so they are holding the line on price increases -- and so we have a "shortage". But at some price level for 22LR between $0.05/round and $5.00/round the marketplace will be in equilibrium and there will be no shortage. (It should be closer to $0.05 than to $5.00. I just got an e-mail that one of the online retailers is shipping me a brick -- at less than $0.05/round -- only 6 weeks after I ordered it.)
Right... as the price goes up, the supply goes up. But there are discrete mechanisms which allow that. For one, the increased prices fund bringing more manufacturing on line. But of you are a producer, and you believe that the shortage is temporary, you might build far less production capacity than if you knew the prices would continue to support increased production. For all you know, by the time you’ve increased your production capacity, the demand might drop and you’re left with unused equipment.
Look at real estate markets: Occupancy goes over 90% and everyone goes on a construction binge. It takes three years for new office construction to be completed, in some cases (from permit approval to building the office tower). By the time it’s built, there’s a recession. Now you have an emoty office building.