free enterprise 3 rd grade katonya beaubouef – herod elementary
TRANSCRIPT
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?