Free Enterprise 3rd grade Katonya Beaubouef вЂ“ Herod Elementary Free enterprise вЂў The freedom to start a business and sell, for profit, any product or service allowed by law. Consumer вЂў A person who buys a product or service. demand вЂў The desire or need for a product or service. When will the demand for a product be small? High? supply вЂў 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 вЂў A shortage, or lack of supply of a product What are some causes of scarcity? specialize вЂў To do just one kind of work or sell just one kind of product. overhead вЂў The amount of money it takes to run a business. overhead Heating/ cooling workers electricity wage вЂў The money a worker is paid. profit вЂў 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 вЂў The job of getting costumers to want a product. McD sponsor coupons advertise competition вЂў 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?