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Monica has a monthly entertainment budget that she spends on (a) movies and (b) an assortment of other entertainment items. When the price of each movie is $8, she spends a quarter of her budget on six movies a month and the rest of her budget on other entertainment. Monica was offered an opportunity to join a movie club at her local theater that allows her to purchase movies at half the regular price, and she can choose each month whether to join the movie club or not. There is a membership fee she must pay for each month she belongs to the club. Monica is exactly indifferent between (a) not buying the membership and, therefore, paying $8 for movies and (b) buying the membership and paying $4 per movie. So, she flips a coin each month to determine whether to join the club that month. In months that she does join the club, she sees eight movies. For her birthday, a friend gave her a one-month club membership as a gift, and that month she saw 12 movies. 1. If there were no club and the price of movies were to simply fall from $8 to $4, how many more movies would Monica buy each month? 2. Determine how much Monica is willing to pay each month for the privilege of buying movies at half price. (What is the value of X that makes her indifferent between joining the club and not joining it?) 3. Of the increased number of movies Monica would purchase if the price were to fall from $8 to $4, determine how much of the increase would be attributable to the substitution effect and how much to the income effect of that price decrease. 4. For Monica, are movies a normal, inferior, or Giffen good