Hi, there. I am a native speaker. If anybody asks me where do I live, I will never repeat "I live in...". The natural answer is "In Barcelona".
Yes, of course, we can answer with the short reply "in + [place]", the same way that if we are asked "¿Cuántos años tienes?" we could also just say the age straight away: "25", "40".
But the purpose of the lesson is to recognise and learn how to use the verb too.
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