Should I Use Varnish for RESTful API

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I have a server running Ubuntu, Apache2, Drupal 7, Varnish.  I have  a PHP RESTful API that I run on this computer that takes search requests from the API request and then returns the data from the drupal database in a JSON format and shortly will be returning XML and HTML if requested.  Right now I have varnish setup to pass on the API requests, should I let varnish cache the data?  Currently the search terms are pretty small and the returned data is in the hundreds of records, hopefully soon the number of records in the database will jump alot and the search terms and returned data will jump to large number of records.