About demand and supply

In 2006, the average price for a daily edition of Baltimore newspaper was $0.5. In
2007, the average price had risen to $0.75. Three different analysts gave three different
explanations for the higher equilibrium price.
Analyst 1: The higher price for Baltimore newspapers is good news because it means the
population is better informed about public issues. These data clearly show that the citizens of
Baltimore have a new and increased regard for newspapers.
Analyst 2: The higher price for Baltimore newspapers is bad news for the citizens of Baltimore.
The higher cost of paper, ink and distribution reflected in these higher prices will further
diminish the population’s awareness of public issues.
Analyst 3: The higher price for Baltimore newspapers is an unfortunate result of newspapers
trying to make money as many consumers has turned to the Internet to access news coverage
for free.
As economists, answer the following questions:
a) Do the above 3 explanations make sense based on what we know about economic
principles? If they do make sense, can you figure out which explanation applies to
the case of rising newspaper prices in Baltimore?
b) Among the explanation which make sense, who is right if quantities of newspapers
bought have been falling
c) Is it possible that two of the analysts are correct? Explain with an example.
Note: use demand and supply curves to demonstrate and explain your answers