Currently circulating in the New York State legislature (and likely to pass) is a proposal that would effectively cap rent increases on many kinds of properties at 3% annually. The way it will work is this --- if a landlord increases the rent by more than 3%, then he/she will be unable to evict any tenants who refuse to pay the portion of their rent that goes above the 3% increase. Hence, it is actually an anti-eviction law.  

1. Economically speaking, who wins and who loses under this scenario? 

2. How does your answer change when the annual rate of price inflation 1% as opposed to 7%? 

3. What are the likely effects of such a law upon the long-term supply of housing in New York State? 

4. What are the economic alternatives?