Microeconomics Case Study

Credit Cards – Boon or Bane: An insight into Customer’s Choice: Are We in Savings Management or Expenditure Management?

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Abstract:
The case looks into the demand and supply scenario of credit card industry in India and examines the concepts of demand and supply saving management vs. expenditure management, consumer behaviour and elasticity. The case discusses about the players in the Indian credit market, various determinants of credit business and debates whether spending through credit cards is easy in a cash economy like India.

Pedagogical Objectives:

• To understand the concepts of demand and supply with reference to credit cards
• To understand the concept of elasticity.

Keywords : Credit Card, Debit Card, Saving Management, Expenditure Management, Customer’s Choice, Interest Rate, Elasticity of Demand, Elasticity of Supply, Income Elasticity, Price Elasticity, Debt Instruments, Managerial Economics, Microeconomics, Economics for Business, Business Economics, Economics for Managers, Paul Samuelson