Ibn Khaldûn’s perspective about equilibrium of price in Muqaddimah book

ENGLISH:

Equilibrium of price is the balancing which is happen when the supply and demand is balance. The equilibrium of price will be reached when there is an agreement of seller and buyer to do the transaction with take care with the supply and demand of goods or services. As we know that Ibn Khaldûn is the expert of sociology but he also expert in economy in his classical era. This research stands as the proof of the real contribution of classical Islamic economic thinkers which have the contribution to the development in this era, because of there are little Muslim who want to learn about it.

This research has two statement of problems, they are Ibn Khaldûn’s perspective about the equilibrium of price and the factors which are influence to the equilibrium of price in his era. This research uses conceptual approach and historical approach which are built by Ibn Khaldûn in his book Muqaddimmah.

The conceptual approach is the approach to understand about the concept depend on the thought, perspective or doctrine which is developed in related issues with the theme. Beside that, the research also use historical approach which is understanding about the background of the issues related to the theme and the development of issues which are related to the theme.

This research uses secondary data in collecting method which is done by documentation technique by collecting some written sources which are relate to the theme. After that, the writer analyze all of the data collected and write it to describe about Ibn Khaldûn’s perspective about the equilibrium of price and the factors which are influence to the equilibrium of price in his era. After that, the writer also analyze about the similarities and the differences between equilibrium of price concept depend on Ibn Khaldûn’s concept and the contemporary concept.

There are two conclusion from this research. First, equilibrium of price is the condition when the supply and demand of goods and services is balance. Second, there are some factors which are influence the equilibrium of price. They are the capability of workers and the needed of employer, the condition of city and the population there, the additional cost of goods because of taxation, the political condition in certain place, the understanding of trader about the taste of buyers, the distance and the challenge faced by the trader, monopoly practice, and the prosperity of the population.