How many ads to place for a 500 words article?

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The number doesn't matter. It is the quality of the keywords that matters. I get really annoyed when returns on a search bring up loads of very tangentially related material.
 
I prefer 7-8 ads for a 1000 words article and 4-5 for a 500 words article. Sure you can add more but it affects user experience. You will experience higher bounce rate after increasing the number of ads.
 
Depends on your content, website layout, and the banners you are going to use. Generally speaking 2-3 inline ads are fine.
 
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