I am not familiar with this form of "y x diagram", but I assume the straight line gives the liquid composition and the curve gives the composition of the vapour in equilibrium with it at its boiling point.
For a mixture like ethanol-water, consider a mixture with ethanol content lower than the azeotropic composition. Will the vapour have a higher ethanol content than the liquid, or lower? What about a mixture with ethanol content above the azeotropic composition?