A newspaper recently lowered its price from $5.00 to $3.00. As it did, the number of newspapers sold increased from 240,000 to 280.000 46 a. What was the newspaper's elasticity of demand? Instructions: Enter your response rounded to two decimal places Price elasticity of demand is b. Given that elasticity, did it make sense for the newspaper to lower its price? Demand is (Click to select) so it (Click to select) make sense to lower the price because it (Click to select)y total revenue. c. What would your answer be if much of the firm's revenue came from advertising and the higher the circulation, the more it could charge for advertising? It would make sense to raise the price because elasticity is below 1 It would make sense to raise the price because firms will be more likely to pay for advertising in a more expensive newspaper It would make sense to lower the price in order to increase elasticity to 1 where revenue is maximized. O It would make sense to lower the price in order to increase the circulation for more advertising revenue,