Use Figure 12.1 to answer the following question. Assume that this industry is currently enjoying normal economic profit and for whatever reason there is an increase in demand for the goods produced by this industry. Using general equilibrium analysis explain what will happen both in this industry and in industry Y which is perceived by consumers as being a product that is a substitute for product X. 
Definitions:
Product Set
A collection of products that a company manufactures or sells, often related in usage or marketed under a single brand.
Pricing Strategies
Plans developed by companies to determine the most appropriate price for their products or services, aiming to maximize profitability and market share.
Product Life Cycle
The stages through which a product goes from its initial concept and development, through its marketing, growth and peak sales, to its eventual decline and discontinuation.
Underpricing
The strategy of setting a price lower than the market value or cost of a product or service, often used to attract customers or gain market share.
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