Amplitude modulation (AM) encodes information by varying the amplitude of a carrier wave. In AM, a high amplitude represents a 1 and a low amplitude represents a 0, while the frequency remains unchanged. AM is used in radio transmission where a carrier wave is modulated by an audio signal containing voice information. Frequency modulation (FM) encodes information by varying the frequency of a carrier wave. In FM, different frequencies represent 1s and 0s, while the amplitude stays the same. Phase modulation encodes information by introducing phase shifts of 0 and 90 degrees to the carrier wave, keeping both the frequency and amplitude constant.