Recall from chapter 2 that the behavior of the buyers in the market place is represented by the market demand function. Under the assumption of ceteris-paribus, a market demand curve shows how the quantity demanded of a good varies as the price of that good varies. Also, each point on the market demand curve for a good represents the marginal valuation of each consumer. In other words, each point on the demand curve represents the valuation of consumers and at the same time the price that each consumer is willing to pay most for the good. Hence, the demand curve can also be called the willingness to pay curve. Willingness to pay tells us the maximum amount that a buyer will pay for a good or service. Also it measures how much the buyer values the good. In any market, there are many buyers of a good and the market demand curve then represents each buyer’s willingness to pay for that good from the higher prices to the lowest.