Minimum wages, the discussion continues

Ivry Man encounters Dr, Know at their customary meeting place, and raises the issue of the minimum wage in California. They had previously discussed minimum wages here.

IM:	Did you see that Los Angeles has increased its minimum wage to $15. It seems soon the whole of California will follow. Isn’t this wonderful?
DK:	Yes, wonderful. Tell me, why only $15? Why did they not increase it to $20 or $25 or, indeed, $100?
IM:	Of please Dr. Know. That would be stupid. At those prices businesses could not afford to hire all the workers. That is just common sense.
DK:	But at $15 they can? How do you know this?
IM:	I am sure the law-makers must have researched it thoroughly to come up with the right wage level.
DK:	Why on earth my good man would you believe that?