In the formula for consumer surplus, what does the base represent?

In the context of consumer surplus, the base in the formula represents the quantity demanded at the equilibrium price. Consumer surplus is defined as the area between the demand curve and the market price, up to the quantity purchased. The base, which corresponds to this quantity, is crucial because it reflects the number of units for which consumers are willing to pay more than the market price.

Essentially, consumer surplus quantifies the economic benefit to consumers who purchase a good at a market price lower than what they are prepared to pay. By multiplying the height of the surplus (which is the difference between the maximum price consumers are willing to pay and the market price) by the quantity (the base), we can calculate the total consumer surplus. Understanding this relationship helps clarify how changes in price or quantity can impact consumer satisfaction and overall market efficiency.