👉 Overcapacity is a concept in economics and finance that refers to the excess capacity of an economy or industry beyond its theoretical or potential limits. This means that there is more than enough demand for goods or services, but not enough supply, which can lead to shortages or price inflation. For example, if a factory has 100 workers working on production, but only needs 80 workers to meet the demand, then the overcapacity would be 20 workers. If there were more workers
