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?
- 425
- 550
- 575
- 515
- 675
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