ANSWER:

The impact of increasing product variety on implied demand uncertainty is that there is a risk of customer shifting their preferance to some other brand.

Explanation: Implied demand uncertainity is stated as the uncertainity whether the product supply will fulfill the demand in the market. It is the uncertainity in the delivery chain management. In this scenario, the increase in product variety without fulfilling the demand of the existing product will not help the business operations and it forces the customers towards the new brand due to the failure in satisfying the customer.