4. Karen's income elasticity of demand for bottles of her favorite wine is 1.5. Currently, her income is equal to $50,000 and she normally buys 500 bottles per year (Unless Karen entertains a lot, she has a problem). If her income increases to $55,000 how many bottles of her favorite wine will she buy per year?
  1. 425
  2. 550
  3. 575
  4. 515
  5. 675

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