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 Work
SUPPLY
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.
overhead
Heating/
cooling
workers
electricity
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
sponsor
coupons
advertise
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?