Anyone with half an ounce of sense (or reads newspapers) would realise that the Queen occupies just a small suite of modest rooms in the palace. Just as with any other country in the world there is always a building containing state apartments whether it be the White House in the US or the Kemlin in Russia. This is where the head of state, in our instance the queen, entertains on behalf of the nation. Just as with any large corporation which spends lavish amounts on entertaining to attract business, this country is the same postion when entertaining foreign powers etc. Her majesty adds such prestige and dignity to these occasions, that it is so that this country prospers as it does. The royal family rarely if ever entertain privately in Buckingham Palace
The queen in her private life lives quite modestly for a woman of her class, as shown in pictures taken by an undercover reporter, of her rooms a couple of years ago. I think we were all surprised to see breakfast laid out in tupperware boxes and a small transistor radio on the table. Truth is the queen does not have an army of personal sevants waiting on her hand and foot and prefers the simple pleasures in life, like watching racing on TV and walking her dogs.