Right. There are a few different ways to handle this and it's up to the business owner to make the call that's best for them.
Point being, it's not always as simple as, "I'm being forced by the government to pay higher wages, and no way I'm cutting my own comp, so I'll just raise prices to cover the wages increase so my customers pay for the whole bump, which sucks for them but hey, everything will work out nice and neat for me". For many businesses, there's a good chance that they wouldn't be able to pass all, or even some, of the wages increase on to their customers, who may simply flee to cheaper competitors, or buy less, or quit the product altogether. In that case the business would have to absorb at least some of the loss by having only a nominal price increase, or maybe even no increase at all, in a bid to maintain sales volume. #CapitalistBlues