Question

Why is consumption level different for urban and rural people​

Answer 1

Answer:

Because the The urban people lead a very high and expensive life as compared to the rural people

that's why they have very high consumption

Answer 2

First, the constant basic consumption in rural area is less than urban one. Second, the disposable income elasticity of demand in rural area are more than urban one. So I think the gap of disposable income limits comsuption in rural area and creates the different consumption between rural and urban areas fundamentally

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