Population pyramids provide a pictorial representation of the age and sex composition of a population by displaying demographic data. They show births, deaths, and migration. Developed countries typically have a narrow base and bulge in the middle representing lower birth rates and more people living longer. Developing countries often display a broad base, narrow top, and high dependency ratio due to higher birth rates and shorter lifespans. The demographic transition involves countries shifting from high birth and death rates to lower rates as development increases.