Final answer:
The student's question involves the workforce's willingness to supply labor in Miami's market depending on wage levels. The broader context explores the debate between minimum wage and living wage, arguing that the latter should ensure a standard of living above the poverty line for low-income workers and their families.
Step-by-step explanation:
Labor Supply and Minimum Wage
In the context of Miami's labor market, 105 people are willing to work as hostesses for an hourly wage of $15. With each increase of $5 above this wage, an additional 35 people are willing to join the labor force. This question connects to the broader discussion of living wage versus the minimum wage as price floors in the economy. The U.S. federal minimum wage, set at $7.25 per hour in 2009, is considered by many to be insufficient for maintaining a reasonable standard of living. Advocates for a living wage argue that it should align more closely with the actual costs of living, especially in the context of supporting a family. For example, a family with two adults earning minimum wage with two children finds that one adult working while the other provides childcare results in a family income of just $14,500 annually, which is below the federal poverty line for a family of four.
It's important to note that local movements aim to establish a living wage that reflects the true cost of living in high-cost areas. If a living wage were established, it would raise the price floor above the current federal minimum, theoretically improving living standards for low-wage workers.