A key ingredient of hazelnut butter (one brand that makes this is Nutella) is hazelnuts which are grown in many regions around the world. Hazelnut butter production uses about a quarter of the world crop. Two things have occurred recently, a frost destroyed a large fraction of total hazelnut crop around the world. At the same time, technology used to produce hazelnut butter has improved significantly during this period.

Q: How do these occurrences affect the equilibrium price and quantity of hazelnut butter?

Please show your work graphically and explain.

Thanks.