At some point I think the law of supply and demand would kick in to where prices would rise.

Let's say a butcher is selling stakes and he gets 100 steaks in a week because that is how many steaks he can get a week for the price he charges customers.

At less than minimum wage, I can only afford a steak once a month. In the place I work there are 20 people getting the same sub-minimum wage I do that also eat steak once a month.

Suddenly we get a raise to the minimum wage and now my 20 coworkers can afford steak once a week.

The first couple times we go to the butcher to get a steak, he cannot meet all the demand because he can only get 100 steaks a week at a certain price.

After two weeks the butcher decides he is losing money by not meeting the demand of his customers. He calls his suppliers to get 150 steaks a week. His supplier says that everyone across the land is demanding more steak too. The supplier can only give the butcher 150 steaks a week if the butcher pays a bit more for each steak. The butcher not wanting to turn away customers agrees to the higher price.

To keep making money on the steaks the butcher raises the price he charges customers for each steak.

That week the butcher is able to sell all the steaks because some customers gladly pay the higher price to get a steak and other customer switch to hamburger because they do not want to pay the higher price.

But now the butcher needs to request more hamburger from his supplier. And so the cycle goes on until all prices for edge higher to balance supply and demand.