A New Perspective on Supply: Contrasting Conventional and Islamic Economic Frameworks

Abstract

The concept of supply has long been central to economic theory and policy formation, traditionally rooted in neoclassical frameworks that emphasize individual rationality, utility maximization, and market equilibrium. However, these principles often overlook spiritual and ethical dimensions intrinsic to broader socio-economic well-being, particularly within Islamic economic thought. In recent years, scholars have begun reevaluating foundational concepts like supply through alternative paradigms, especially those grounded in al-iqtiṣād al-Islāmī. This study aims to explore how the notion of supply differs between conventional and Islamic economic systems by comparing theoretical foundations, epistemological approaches, and operational implications. It investigates how Islamic economics integrates divine law (sharī‘ah), communal benefit (maṣlaḥah), and moral accountability in shaping supply behaviors and mechanisms. Utilizing a qualitative method through textual analysis of primary Islamic economic texts and conventional economic literature, the study finds significant divergences. While conventional models focus on price mechanisms and marginal utility, Islamic supply principles emphasize lawful production (ḥalāl), just distribution, and spiritual intentions. The findings suggest that supply in Islamic economics is inherently normative, guided by ethical frameworks that transcend material maximization. This research contributes to the growing discourse on pluralism in economic thought by presenting a structured comparison between two frameworks. It holds significance for curriculum development, Islamic finance practices, and future research in heterodox economics.