Equilibrium Theory in Conventional and Islamic Economics: Implications for Price Equilibrium

Abstract

This study examines the differences and similarities between market equilibrium theory from conventional and Islamic economic perspectives, as well as their impact on price stability. The main issue raised is how each economic system understands and applies the concept of market equilibrium and how its implementation affects justice and social welfare. This study aims to provide a comprehensive understanding of market mechanisms in both economic perspectives, particularly in creating stable and fair prices. The research method used is a qualitative approach with descriptive and comparative methods. The research data are sourced from literature related to equilibrium theory and Islamic economic doctrine, including books, scientific articles, and sharia documents. Literature study and document analysis are applied to identify similarities and differences between the concept of price equilibrium in conventional and Islamic economics. The conclusion of this study shows that conventional economics tends to prioritize efficiency and growth with a focus on free demand and supply. Meanwhile, Islamic economics emphasizes market equilibrium that encompasses the principles of justice, social welfare, and ethical responsibility. Price equilibrium in Islamic economics also prioritizes equitable distribution and avoids exploitative practices , contributing to a more stable and fair market