Re: Threat of Chinese Overcapacity Looms Over Memory Chips

According to the Law of supply and demand taught in every Economic 101
class, demand is not static. Rather the demand curve would shift
according to various factors such as the presence or absence of
competing goods and economic environment.
If the economy is contracting and consumers are cutting back on certain
merchandise, one could make the prediction aggregated supply for that
merchandise will be larger than aggregated demand. Still, one cannot
really tell Chinese, American or country X overcapacity until the
results are in.