This page provides a comparison of two image files. The same PSD was saved in two different file formats, JPG (left) and GIF (right).

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This is a JPG

This is what a JPG image looks like at 500x magnification. The file size of this JPG is 26 KB. It was saved in Photoshop (File menu: "Save for Web") at Medium compression quality (30).

This is a GIF

This is what a GIF image looks like at 500x magnification. The file size of this GIF is 19 KB. It was saved in Photoshop (File menu: "Save for Web") at 256 colors (Lossy: 0), Adaptive, No Dither, no transparency, no interlace.