Explain how X1 is related to Y ( positively or negatively) a. State how X1 influences Y? Explain In line with economic theory, Y and X1 have the following relationship: The industry supply curve moves to the right, showing more units of the product being produced, as the number of new businesses entering the market rises. The market price will drop as a result of this increased production, which will lower industry profitability. As a result, a negative (-) theoretical sign is anticipated between entry and profitability. b. State how X2 influences Y? Explain In terms of X2, market conditions can have various effects on industrial performance. For example, a recession or a drop in demand for prefabricated metal buildings would have a negative influence on industry performance. In contrast, if demand for these items rises owing to favorable market conditions such as cheap interest rates or increased government investment in infrastructure projects, industry performance will improve