a. Explain the effect of the increase in the rent ceiling on the quantity of rent-stabilized apartments.
b. Why is rent stabilization a source of conflict between renters and owners of apartments?
New York's Rent Guidelines Board voted for a rent increase of up to 7.25 percent over the next two years on rent-stabilized apartments. A survey reported that last year costs for the owners of rentstabilized buildings rose by 7.8 percent. In addition there is growing concern about the ability of the middle class to afford to live in New York City.