Households can be categorized by composition and size, influencing the goods and services they consume, which are typically divided into primary versus secondary, social versus personal, and regional versus seasonal categories. Income levels do not always correlate directly with changes in household size or consumer prices, as some social goods provide consistent utility regardless of income. This study utilizes the LITS III dataset from the World Bank and EBRD to analyze economies of scale in Armenia, focusing on food and non-food expenditures. We assess how household consumption strategies vary with changes in household size and age composition, revealing different impacts for households with children versus older members. Literature review highlights diverse opinions on calculating economic scale, with varying methodologies and results. Our empirical analysis estimates overall economies of scale, and specific indices for different goods, showing significant variation in consumption efficiency. Poverty measures are recalculated incorporating economies of scale, demonstrating substantial differences in poverty assessments.