Suppose the equilibrium rent for apartments in Boston is $1,600.If the city of Boston imposes a price ceiling of $1,200,there will be a(n) :

A) increase in producer surplus for each landlord.
B) surplus of new apartments in Boston.
C) increase in consumer surplus for Bostonians who can find apartments for $1,200.
D) increase in total surplus.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive in the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the utility gained from the purchase.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.