Economics A-Level
Marshall-Lerner Condition
What Marshall-Lerner Condition means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Marshall-Lerner Condition
The condition that a currency devaluation will only improve the trade balance if the sum of the price elasticities of demand for exports and imports is greater than one.
Topics that use Marshall-Lerner Condition
- International economics (Pearson Edexcel A-Level)
Related terms
Using Marshall-Lerner Condition in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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