B,C and D are out ..

BTW A and E -
(A) Town S has a larger population than Town T(It just talks about the population, not about the newspaper sales and its readers. So it has no impact on conclusion)

(E) The average newsstand price of newspapers sold in Town S is lower than the average price of newspapers sold in Town T.( since the price is lesser in S , more people buy newspaper in S and thus are better informed ..this strengthens the conclusion and is the right answer)

hope it helps !!

Hi joyseychow,

The asnwer must be E.

The argument is that because there are more newspapers sold in one town, the residents of that town are better informed about world events. The actual price of the newspaper is irrelevant to this claim: even if the reason fewer newspapers are sold in Town T is that they cost more, it does not weaken the conclusion that Town T's residents are not as well informed about the world as those of Town S.

A, on the other hand, does weaken because it points to an alternative explanation for why so many newspapers are sold in Town S (it's not that they are better informed, it is just that there are more of them). And, if this alternative explanation is correct, it casts doubt on the explanation (conclusion) offered in the passage. Hence, after reading choice A, you should find the conclusion less convincing than you did prior to your knowledge of choice A.

I believe the answer should be E