Agile addresses the problem in several ways.
First, an Agile team's highest priority is to satisfy the customer through early and continuous delivery of valuable software. Unbridled demand almost always will exceed resource capacity, but increasing flow of finished work from the development organization definitely results in higher levels of satisfaction from those who produce the demand.
Further, delivering working software frequently, from a couple weeks to a couple months, with a preference to the shorter timescale, means a team satisfies demand on a more regular basis and on a timeframe that corresponds to the customer's ability to absorb and implement new features and enhancements.
Finally, Agile processes promote sustainable development. Sponsors, developers, and users sho…