Probably not, right? Demand is already there. The factory is already incentivized, it’s just damaged and needed time to get back to full capacity. A contender isn’t just going to spring up because prices are temporarily high.

Even if you already had a factory that could easily be converted to this product, you’d have to factor in the switching cost, opportunity cost, shipping, marketing and regulatory stuff. This likely offsets the consumer’s willingness to pay extra during the shortage, and as soon as the original factory is back, they’re going to price you back out. They’re already operational, as per the article.

In the longer run, maybe, but if the factory is already working to rebuild then arguably that incentive is already met and it's more just the time it takes to get capacity back up, which is not as flexible with spending money on it as people would like.

Would you make a hard bread factory if the price was higher? How high?