Graphic file formats are used appropriately
From WolfWikis
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Explanation
You should use the file format most appropriate to your type of image. If you image is a photo has lots of gradients, or has lots of different colors (more than 1000) you should save your image as a JPG/JPEG. If you image is more basic like a logo or a cartoon image (fewer than 1000 colors) you should save as a GIF.
PNG is another alternative file format that works for any type of image. Care needs to be taken when saving to this format to ensure you are properly compressing your image.