The logical move is to raise the prices on the Prius to the point where it makes sense then. Although this may not be feasible due to consumer backlash, etc but from my economics course it sounds to me like they could raise prices to make more $ and then invest that $ into improving their hybrid supply chain.

I mean if the things are selling above MSRPs they're going to have car salesmen pounding on their doors for more. And we all know how pushy that segment is