Final answer:
Difficulties in forecasting demand for new tech products arise from the unpredictability of technology futures, imperfect market information, and the extensive time and uncertainty involved in R&D.
Step-by-step explanation:
Forecasting demand for new technological products is difficult because the future of technology is unpredictable, and the development process is typically time-consuming and fraught with uncertainty. In private markets, there may be too few incentives for the development of new technology because of factors such as imperfect information about product quality, geological challenges that limit resource availability, potential for market collapse upon the introduction of superior substitutes, and the fact that once a technology is developed, its broad availability can diminish incentives to invest in Research and Development (R&D). To compound these issues, manufacturers may intentionally design products with a short lifespan, further complicating demand forecasting.