The South Australian government has released the hounds against McDonalds over a potential price hike,

SA Consumer Affairs Minister Gail Gago says it is not against the law for outlets to charge different prices, but she hopes that is not McDonalds' plan.

"I'm calling on McDonalds today to come out and clear this matter up," she said.

"We want to know whether they do plan to proceed with such a policy.

"I'm also putting McDonalds on notice that inspectors will be out and are monitoring pricing structures over the next couple of months." -- Source

What a great example of economic incompetence. Gail obviously believes that higher prices are a result of the greedy and dishonest businessmen, rather than changes in the conditions of demand and production (she also assumes that the current price is somehow the 'correct' price). If, somehow, her investigators find "evidence" that McDonalds is charging too much for their burgers (ripping off the poor) and she manages to forceably keep the price down, it will only be detrimental to the very people she's trying to protect.

As burgers would be cheaper, demand rises as people are both tempted to buy and can afford to buy more. In addition, McDonalds will eventually cut supply as Gail has effectively discouraged production of burgers for producers -- profit margins have been wiped out. The end result will be the store shutting down (putting the poor people she's trying to protect out of work!). That is of course unless Gail decides to impose more regulations -- for example subsidising beef producers to lower their prices, or buns, or whatever else she can think of. This will in effect subsidise the consumer at the expense of the taxpayer, giving them something for nothing, diverting resources from somewhere more productive thereby decreasing the wealth of the entire nation.

I suppose that's how they get elected though, right?