An Analysis of Supply Theory from the Perspective of Islamic Microeconomics: A Literature Review on the Factors Affecting Supply

Abstract

This study examined the determinants of supply in Islamic microeconomics and compared their treatment with conventional supply theory. A qualitative descriptive literature review analyzed selected journal articles and books through thematic classification, interpretation, and conceptual synthesis. The analysis identified product prices, production costs, raw material availability, technology, productivity, the number of producers, government policies, expectations, and natural and distribution conditions as supply determinants. Higher product prices generally encouraged increases in quantity supplied, other factors remaining constant, whereas changes in nonprice determinants could shift the supply curve. Islamic microeconomics recognized economic efficiency and profitability while evaluating production and transactions according to honesty, fairness, halal compliance, social responsibility, and public welfare. The review distinguished inventory management and price increases arising from genuine scarcity from hoarding intended to manipulate availability. Market supervision was considered appropriate when supported by evidence of deception, unfair practices, or restrictions that harm consumers. The study contributed an integrated classification separating economic supply mechanisms from normative requirements governing producer conduct, without treating ethical principles as measured changes in supply. Its narrative design and selected sources limited generalizability, and examples involving agricultural commodities and enterprises remained illustrative. Future empirical research should examine costs, output, inventories, and compliance practices across industries.