During a boom, what typically happens to prices?

During a boom, economic activity is at its peak, characterized by high consumer confidence, increased production, and higher demand for goods and services. As demand outstrips supply, businesses face pressure to raise prices in order to maximize profits. This heightened demand, coupled with limited supply, leads to a general increase in prices across various sectors of the economy. Consequently, inflation becomes a common occurrence during boom periods as consumers are willing to pay more, further driving up prices. Thus, the assertion that prices rise quickly during a boom reflects the natural economic dynamics at play when growth conditions are favorable.