Looking at it another way it is the maximum amount that a person is willing to

# Looking at it another way it is the maximum amount

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that buyers (consumers, demanders) will buy at a given price. Looking at it another way, it is the maximum amount that a person is willing to pay for some amount of a good.Where does the demand curve come from? It comes from individual preference and utility. An “individual demand curve” is how much a person will pay for a certain amount. This is calculated based upon the idea of “declining marginal utility,” which is another way of saying that the more we have of a certain thing, the less we value getting an additional unit of that good. For example, when you are hungry, you may
place a lot of value on the first slice of pizza because you get a lot of utility (happiness) out of that first slice. The second slice gives you more happiness, but not as much as the first, and so on.When you have had 3 slices, you place very little value on the 4th slice.A person is willing to pay up to his marginal utility, but not more (because you will not give away more money than the amount of utility you get from using something).Individual Demand Schedule:Quantity of Pizza ConsumedUtility derived from consuming last slice1\$52\$43\$34\$25\$16\$0Individual Demand Curve: