An increase in the foreign demand for U. S. wheat, combined with improved technology in U. S. wheat production, would cause the domestic equilibrium price of wheat to and the equilibrium quantity to .

An increase in the foreign demand for U.S. wheat, combined with improved technology in U.S. wheat production, would cause the domestic equilibrium price of wheat to remain unchanged (intermediate) and the equilibrium quantity to increase.

Explanation:

It is worthy of note that as the foreign demand for U.S wheat increases, there was a combined improvement in the technology used in the U.S wheat production. Hence it can be stated that as demand from foreign sources increased, the supply also increased to mop up the effect of this increase in demand, as a result, the domestic equilibrium price remains relatively unchanged. If the production rate had not increased along with demand, there would have been more demand than supply thus, the price of wheat would have increased. On the other hand, the equilibrium quantity of wheat increased due to the improvement in production technology.

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