[vlucas]

Answer: It raises prices for everyone, because the vast majority of companies will not simply absorb the hit to profitability, assuming they even have the ability to absorb a cost increase that large at all.

[phaemon]

Your answer appears to be wrong.

Here are inflation figures for the UK from 1990 to 2015:

http://www.rateinflation.com/inflation-rate/uk-historical-in...

Can you spot the year that minimum wage was first introduced in the UK?