[VeniVidiVici]

It's called the market.

Um, no.

[aposiopetic]

The firm may freely choose to raise the price it charges now. Predictably, demand declines. But you say this is not a market, presumably because the cost of one of factor of production, labor, was increased by government action? I am not endorsing that action but am aware that such things have happened in the past. The firm must also have been aware.