That's where the supply shortage comes in. If lots of people have money but there's excess capacity in the market, nobody will raise prices because the firm th

That's where the supply shortage comes in. If lots of people have money but there's excess capacity in the market, nobody will raise prices because the firm that doesn't ramps up capacity and captures the excess market share. If lots of people have money but there's a supply shortage, the firm that refuses to raise prices lacks the excess capacity to capitalize on their consumer demand, and fails to gain market share.