AT&T charges $100 for every connection and sells 10 million connections in a year. They spent $10 million on advertising that year. They reduced prices and started charging $90 for every connection and sold 15 million connections next year. They spent $12 million on advertising that year. 1. What is the profit for each year? 2. What is the elasticity of price? 3. What is the elasticity of advertising? 4. Are consumers more responsive to advertising or price reductions? Specifically, should they increase advertising or plan on reducing prices?