In the present era of rapid technological transformation it is worth studying the dynamics of household consumption expenditure on various food items as the change in technology has an impact on consumer's taste and preferences. Higher income, urbanization, other demographic shifts, improved transportation, and consumer perceptions regarding quality and safety are changing global food consumption patterns. Variations in food consumption have led to an increase in trade and changes in the composition of world agricultural trade. The study about the consumption expenditure was conducted on the basis of the data collected from two districts of Punjab i.e. Faridkot and Ludhiana. Then 200 consumers from urban area and 200 consumers from rural area were selected randomly so as to make a comparative analysis of dynamics of consumption expenditure in Punjab. To achieve the basic objectives of the study various suitable techniques were employed. For that purpose regression analysis in the algebraic form of linear, double-log and semi-log were applied. Engel's elasticity were also worked out. The study showed that there was a non-linear relationship between expenditure on the majority of the consumption items and income among urban consumers. The findings were supported by the Gini- coefficient for urban as well as for rural consumers and analysis showed that consumption disparity was more in urban areas than in rural areas in Punjab.
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