The answer to your question is yes, some people do work that cheaply. But the odds are pretty good that whoever is working that cheaply is not in the United States. Other people have pointed out that quite a lot of work is outsourced, so chances are that whoever asked you to work for pennies is either unaware of the cost in the US or is so cynical that he/she thinks that people are so desperate for work that they'll work for practically nothing. I would either provide them a list of your standard charges or ignore them.