Objective To describe the income elasticity of demand for medical service among the level countrymen with diffecent incomes.

Chinese urban residents′ consumption structure during ten vears′ period is andlysed,the Engel coefficient is measured and by using extended linear expenditure system,an analysis and forecast of the marginal propensity to consume along with the income elasticity of demand are pro.

The tap water s income elasticity of demand and price elasticity of demand is analyzed, along with the fluctuating range month by month of inhabitant s water consumption.

Analyzing Engel s coefficients, change of trend of marginal consumption of varieties of goods and demand income flexibility.

Adopting statistical data, the article puts up comparative analysis on consumption structure of urban and rural resident in Henan province through three aspects below: Engel’s coefficients, trend of marginal consumption and demand income flexibility.

In this article we discuss the question of extravagance or thriftiness in people s consumption in a society of economy using the methods of income elasticity of demand,consumptive elasticity of natural capital to commodity consumption and income elasticity of natural capital consumption.