Macro and micro

Income elasticity of demand: the responsiveness of demand to a change in consumer incomes:
Thus if a 2% rise in income caused an 8% rise in a products demand, then the income elasticity of demand would be:
Goods: Normal goods: whose demand increase they have a positive income elasticity of demand
Luxury goods: will have a higher income elasticity of demand than more basic goods
Inferior goods: goods have demand decrease as consumer incomes increase such goods have a negative income elasticity of demand.
Necessity goods: goods whose demand changes minorly when income changes. These goods are inelastic because they are basic and needed in everyday life:
MES: is the lowest point on a cost curve at which a company can produce its product at a competitive price. MES allows a company to compete more effectively since it can produce it is good effectively at the minimum cost per unit. When minimum efficient scale can be achieved with small amount of production, many companies can operate efficiently and compete in a industry such a restaurants. When assessing the minimum efficient scale, it is important for a business to stay abreast of changes in external variables that could affect production.