Sunday, August 23, 2009

Misleading Again

I reccomended you to see this article.
M. Bambang Pranowo, Professor of Religion-Sosiolog UIN Jakarta, wrote an artice "Virus Kapitalisme dalam Keberagaman". I quoted these interesting opinion:

"...Melihat kenaikan harga sandan-pangan menjelang dan di bulan puasa, bisa kita duga, puasa justru membuat orang makin konsumtif. Kenaikan harga pasar itu niscaya mengikuti hukum permintaan dan penawaran. Makin besar permintaannya, makin tinggi harganya. Ini indikasi, di bulan puasa, umat Islam makin konsumtif..."
Interesting, eh? He was so brave using supply-demand approach to took a conclusion that today's moslem are more consumptive (regarding many definition of "consumptive" terms). Is it true Moslem nowadays more consumptive just because price level is higher on Ramadhan? I doubt it. Economics told different. More possible way to explain why price level increase on Ramadhan is simply because reaction of supply side on anticipate decreasing expected demand. Suppy curve shifted to left because they know they will face decreasing demand on future. So it possible to see price level go higher than normal.

I didn't come to say that my opinion is best explanation for this short-term inflation. Just want to sa that supply and demand works more complicated than Prof. Bambang state. Last, stop blame on capialism as a cause of people preferences and why people keep Heroin on Al-Quran.

3 comments:

Ruth Nikijuluw said...

ki, just want to see this phenomenon from the other side.

all of us know that according to supply-law,quantity and price have a positive relation.
moreover, supply curve can be shifted if other factors beside price are changing, one of them is expexted demand..

Ramadahan occurs before Lebaran, and the trend of consumption on Lebaran is increasing.So,
More possible way to explain why price level increase on Ramadhan because reaction of supply side on anticipate "increasing expected demand" (in Lebaran). therefore, price nowadays in Ramadhan is relatively lower than price that will be occur in Lebaran, so Suppy curve shifted to left and price becomes higher..

Archie said...

I don't know if there really exist such as expected demand. I would rather say that demand is matter. I agree with Mr Bambang.

Adhi Rachman Prana said...

Oh My God!! I just met you all in this blogging world.. Hahaha