Read the WSJ article for background information and context.

I HAVE COPY AND PASTED THE WRITING FROM THE ARTICLE BELOW SINCE IT WASN'T VERY LONG TO BEGIN WITH.

Question 1:

a) Why have policymakers proposed rent control in Boston?

b) Draw a supply and demand diagram that demonstrates the implementation of rent control in Boston. (You can draw a standard diagram; don't worry about linking it to the article.)

c) Use a welfare table and describe in words who wins and loses after the policy is implemented. Be sure to describe the various groups of consumers and producers.

d) Describe the short-run and long-run effects of rent control on housing affordability, housing quality, and the quantity of housing on the rental market.

e) What stipulations have policymakers in Boston included to mitigate some of the negative consequences of rent control?

Article Below:

Boston Advances Rent-Control Measure as Costs Climb

State must sign off on mayor's plan to combat surging housing costs

By Jon Kamp

The measure would cap rent increases at the Boston metro consumer-price index plus 6%, not to exceed 10% rent increases in a year. It wouldn't apply to new buildings for 15 years and would also exempt owner-occupied homes with six units or fewer. Overall it would affect about 55% of Boston's rental units. The plan also includes measures aimed at preventing evictions without an adequate cause, such as failing to pay rent or using the property for illegal purposes.

The proposal came from Mayor Michelle Wu, a Democrat who has made rent control one of her main housing priorities since taking office in New England's largest city in late 2021. Her rent-control push will also need to win support in the statehouse, following Wednesday's 11-2 approval, because Massachusetts voters banned rent control via referendum nearly 30 years ago. The state legislature, like the City Council, is controlled by Democrats.

Efforts to add more housing and ease soaring prices that especially hit poorer residents have long been a challenge in Boston, which had rent control before the state ban took effect. Typical asking rents in the city were about $3,420 in January, up about 25% in the last two years, according to data from Zillow Group. This is far above the $1,970 national level.

"We hear from residents across every single neighborhood just how dire it is," Ms. Wu said after Wednesday's vote.

Advocates of rent control have said the measure doesn't go far enough, arguing it will still leave residents exposed to large rent hikes. The nonprofit Massachusetts Law Reform Institute would rather see a 5% cap on annual increases and new buildings exempted from rent-control measures for only five years, said Mark Martinez, a housing attorney there.

On the other side of the debate, a real-estate trade and lobbying group has already launched a six-figure spending campaign aimed at swaying Bostonians, arguing rental rules will dissuade developers the region needs to build more housing. One concern is that this proposal will lead to tighter rules, said Greg Vasil, chief executive at the Greater Boston Real Estate Board, which is lobbying against the measure.

With housing costs outpacing worker wages in many cities, Democratic policy makers and some economists are giving rent control renewed consideration. In recent years California and Oregon have passed statewide measures that cap rent increases, and so have a handful of cities, including St. Paul, Minn., and Portland, Maine. Other proposals have failed, however, such as measures lawmakers floated in St. Petersburg, Fla., and the state of Connecticut.

More than two dozen states have laws that make it difficult for cities to craft rent-control policies, a barrier for many local governments considering new rent restrictions.

State lawmakers will now decide whether to let Boston reverse course, and the outcome isn't assured. House Speaker Ronald Mariano has previously said while housing affordability remains a top legislative priority, there are serious questions about the effectiveness of rent control, his office said.

Gov. Maura Healey, a Democrat, supports communities using local solutions to address their housing challenges and will review any legislation that reaches her desk, a spokeswoman said.