free enterprise 3 rd grade katonya beaubouef – herod elementary

Free Enterprise

3rd grade

Katonya Beaubouef – Herod Elementary

Free enterprise

• The freedom to start a business and sell, for profit, any product or service allowed by law.

Consumer

• A person who buys a product or service.

demand

• The desire or need for a product or service.

When will the demand for a product be small? High?

supply

• The amount of goods offered for sale by a business.

Explain the difference between supply and demand.

How Supply and Demand WorkSUPPLY DEMAND PRICE

High High Low

High Low Very low

Low High Very high

Low Low High

scarcity

• A shortage, or lack of supply of a product

What are some causes of scarcity?

specialize• To do just one kind of work or sell just one kind

of product.

overhead• The amount of money

it takes to run a business.

Heating/cooling workers electricity

overhead

wage• The money a worker is paid.

profit• The amount of money

left over after all the costs of running a business have been paid.

When does a business make a profit? When do they do not?

marketing• The job of getting

costumers to want a product.

McD

advertise

coupons

sponsor

competition

• The efforts of two businesses with the same products to get consumers to buy from them.

What are some things that business do to compete?