How much capacity do people really have to consume?

I was walking on Church Street in Bangalore. It gets very crowded with youngsters coming to fancy cafes, bookstores, street stalls, and so on with their friends.
As I walked, I saw stalls of necklaces, pendants, bags, hats, hairpins, earrings, nose pins, football jerseys. All very colorful and cute!
In one of the stalls, I saw a tray with more than 500 pendants, and it got me thinking—would all of these pendants get sold? I looked around, and all, literally all, stalls of these cute little things were surrounded by people.
I wondered if there could be a saturation point. Could we endlessly add more products, more stalls, and still find consumers eager to buy? I thought, what if we installed five more stalls on the street? What if we built one more street like Church Street? Would all of those get crowded like this street?
It got me thinking about history. Just a few decades back, none of these things existed. They were not produced, and no one consumed much.
I want to analyze how much consumption capacity people have. (In short, I could see it on Church Street—a LOT.)
It also got me thinking about the digital consumption capacity of people. What if Instagram had 500 more creators the very next day? Would people consume? Or would some of it go under-consumed?
I see them as stories. A necklace bought from Church Street serves as a symbol of people’s life stories: a gift from a friend, the same color earrings bought by a group as a symbol of their friendship, a gift from a boyfriend, a gift for someone as a symbol of their relationship, a symbol of celebration of graduation, a Church Street memory, or a Bangalore memory! Even digital creations are types of stories. Stories people like to consume or buy as symbols of some event in their life. That is probably why relatable content works!
It seems like supply increases gradually, taking little steps at a time, always checking if the capacity is present or not. So, it generally never surpasses demand.
But even with this gradual increase in supply (of material stories and digital stories), I can see that consumption has increased pretty quickly.

If you offer them nice stories, people will consume.