@Raudhbjorn how does vastly superior products not affect their economy?
"high prices and low volume" is her business model. If she can make that stick, then it will be OK. Every once in a while, a genius artificer comes along who can make amazing things during their life, and then they pass on. Their works persist as heirlooms, but do not make fundamental changes, except for the occasional innovation that might leak out.
The Swiss Army Knife is a case in point. It is small and impractical, being rather delicate, but a fine status item for the upper class. if she can sell fewer than 100 or 1000, they will go to nobles and perhaps military officers. Some in the metalworking trades might be inspired to develop their skills, but the knife requires a lot of metallurgical knowledge as well, being made of stainless steel. The basic tech of the spring and locking mechanism of the lockback folding knife might be replicated, but its disadvantages next to a fixed-blade knife might make this a rarely-used technology. Perhaps a Journeyman would attempt making such a thing for their masterpiece, but they wouldn't be flooding the market.