Question: Suppose the demand for smart-watches increases rapidly during 2016. At the same time, six more firms begin producing smart-watches. A student remarks that, because of

Suppose the demand for smart-watches increases rapidly during 2016. At the same time, six more firms begin producing smart-watches. A student remarks that, because of these events, we can't know for certain whether the price of smart-watches will rise or fall. Briefly explain whether you agree. Be sure to include a demand and supply graph of the market for smart-watches to illustrate your answer.

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