One sector partial equilibrium model of trade

Exercises:

1. Increase the tariff from 0% to 50% and analyze what is the resulting market equilibrium. To do this, express the effects of the policy in percentage change: $(x_1-x_0)/x_0$.
2. Solve the tariff-increases problem using a tâtonnement approach instead of using GAMS solvers.
3. Express the partial equilibrium model in exact hat algebra, calibrate it and solve the tariff-increase problem in this way.

Write your comments in the file REPORT.md.

Write your solution in the file PartialEq_sol.gms (to create).