Question

How does rural to urban migration increase the purchasing power of people in rural areas?

Answer 1

Rural to urban migration increase the purchasing power of people in rural areas in following ways:
i) Purchasing power is the purchasing capacity of the people which means their income.
ii) The people's main motivation to migrate to an urban area is in search of employment opportunity or higher wages.
iii) The wages in urban areas will be higher compared to rural areas.
iv) When the wages of the urban area is higher than the wages of rural areas, then their income rises which will result in better purchasing power than before.