Redefining Elasticity: A Comparative Analysis in Conventional and Islamic Economic Systems

Abstract

Elasticity serves as a fundamental analytical tool in economics, enabling the assessment of how responsive economic variables are to changes in price, income, or related goods. While conventional economics employs elasticity within frameworks of utility maximization and market equilibrium, Islamic economics reinterprets these models through ethical and spiritual dimensions, emphasizing sharīʿah compliance, communal welfare, and moral intention (niyyah). This study conducts a theoretical and conceptual comparison of elasticity in both paradigms, aiming to identify points of convergence and divergence. Drawing on classical economic theory and Islamic scholarly literature, the research highlights how Islamic economics modifies conventional elasticity by integrating variables such as halāl consumption, zakāt, and prohibition of ribā. The study proposes a hybrid elasticity model that retains mathematical rigor while embedding normative Islamic principles. Results indicate that responsiveness in Islamic markets is shaped not only by economic incentives but also by spiritual accountability and social justice imperatives. This reconceptualization enhances the relevance of elasticity for Muslim-majority economies and contributes to the broader discourse on pluralistic economic modeling. The study offers valuable insights for policymakers, Islamic finance practitioners, and researchers seeking ethically grounded analytical frameworks.