A multiplexer has multiple inputs and a single output line, using select lines to determine which input is connected to the output. It is used to increase the amount of data that can be sent over a network. A demultiplexer is the reverse, with one input and multiple output lines, using select lines to send a signal to one of the output lines. Both are used in communication systems, computer memory, and other applications to efficiently transmit data or connect parts of a system.