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I believe that multiplexers are used to transfer signals from multiple signal sources (that need to be kept separate) on fewer lines. They do this by transferring only one signal at a time, but more than one line is necessary because you have to use more lines to transfer the data of which signal is being transferred for the demultiplexer to send the incoming signal to the right output. This multiplexer can transfer four signals on three lines. The three lines that the four signals are transferred on are represented by the switches.
Chart of HOW MANY SIGNALS THAT ARE TRANSFERRED on HOW MANY LINES:
1:1 (multiplexer is impossible to make for only one signal)
2:2 (multiplexer is used but is nothing but a useless source of annoyance to deal with)
4:3 (this circuit)
8:4
16:5
32:6
64:7
128:8
256:9
512:10
1,024:11
2,048:12
4,096:13
8,192:14
16,384:15
Gap
65,536:17
Gap
67,108,864:27
All powers of two (2,4,8,16,32...) written here have been memorized for a long time and have just been written from memory with startling accuracy, and I'm also just twelve years old! (Please say if I got one wrong.) That last one (67,108,864) is my favorite number.
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