= 1.5 or %
Q = 1.5 x %I (where I is income). An increase in income (of some percentage amount) leads to an increase in wine purchase that is 1.5 times larger, in percentage terms. 
Specifically, we know that = 1.5 or %Q = 1.5 x %I (where I is income). An increase in income (of some percentage amount) leads to an increase in wine purchase that is 1.5 times larger, in percentage terms.
Recall, we are using the simple version of income elasticity. We can compute the answer as follows. (Hint, on this type of test question it's probably better to compute the answer before you even look at the choices given. Otherwise, it's easy to mistakenly mark an answer that looks right, but is not.) 
Karen's income rose from $50,000 to $55,000; an increase of 10%.
From the formula above, we know this means that her consumption
of wine will increase by 15% or will be 1.15 times greater than
before. Since she was originally consuming 500 bottles, she will now
purchase 500 x 1.5 = 575 bottles.
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