Can you think of another situation similar to the LeBron effect in which derived

Question

Can you think of another situation similar to the LeBron effect in which derived demand was created by something that happened in the external environment—something that caused other companies to sell their products to other businesses to meet new demand? For example, after 9/11, many people were concerned for their safety or their ability to survive during an attack. This prompted companies to market safety kits for home and auto. Most of these kits were compilations of existing products, but the derived demand for bandages, flashlights, and so forth increased.

Explanation / Answer

An example showing the situation where derived demand was created by something that happened in the external environment is the real estate housing bubble blast which led to recession and layoffs. Since people had to loose out on their homes as they defaulted on their payments, demand for rented apartments increased, as people lost out on their actual homes. This increased prices of rented houses, or rents in general.

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