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What does "economies of scale" mean when referring to AWS?

Does "economies of scale" mean to ability to increase resources when demand goes up and lower capacity when demand goes down?

I am trying to find the mean of "economies of scale" in the context of AWS ( Amazon Web Services), does it mean to scale up and scale down on compute resources as needed?

Does "economies of scale," mean to pay only more for resources when needed and pay less when you need less resources?

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It means the more you buy, the less you pay.
Example: if 1TB costs 100$, 2TB will cost less than 200$.
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