258 chapter six
mind of a cost accountant (p. 74). His awareness of the effect of the
state of demand on the price of the good could be seen when he
advised his fellow merchants not to buy the goods for which the
demand had declined (p. 81). And more precisely, “Prices do not
increase because of abundance of goods but because of the short-
age of the goods in relation to the demand for it” (p. 70).
Demand, supply and price
The relationship between demand, supply and prices seemed to have
been clear in al-Dìmashqì’s mind. We find him stating this relation-
ship in pointing out that prices of a good might increase as a result
of, “blockage of the transportation road, delay in delivery, increase
in demand, or shortage in the quantity available due to natural,
heavenly or worldly reasons” (pp. 28–29).
Furthermore, it is interesting to note that al-Dìmashqì classified
the increase in prices into different categories and described them
with different terms. In his view, the starting point is what may be
regarded by experts as the average price, in accordance with the
type of goods, the conditions of the market, the region and the cus-
tom of the trade in the region. “An increase above this average price
would be referred to by different terms depending upon the size of
the increase”, he clarified. He scaled the increase into five progressing
stages: a move, a sell out, an uplift, an expensive increase, and an
exorbitant rise. A change in the opposite direction is also classified
into stages, which are six ranging from “calm” to “slump”. The
classification of price movement as such reflects the highly advanced
degree of thinking of al-Dìmashqìand his entrepreneurial awareness
of the economy and business environment.
Price disparity
Price disparity of goods had been pointed out by al-Dìmashqìwhen
he referred to different prices of goods in different regions and coun-
tries. To him, “Pricing goods and the level of what could be regarded
by experts as the average price varies from one place to another,
and what can be priced in India at a certain price might have a
different price in Morocco, which could also be different from that in
al-Yemen. And this is because of the closeness to the source of the
material and the craftsmanship in making the product”. Price disparities,