Use the Mode pop-up menu to specify the number of colors that can appear in your image. Choose Bitmap to create a black-and-white image and choose Grayscale to access only gray values. RGB Color, CMYK Color, and Lab Color all provide access to the full range of 16 million colors, although their methods of doing so differ.
RGB stands for red-green-blue, CMYK for cyan-magenta-yellow-black, and Lab for luminosity and two abstract color variables: a and b. To learn how each of these color modes works, read the "Working in Different Color Modes" section of Chapter 4.
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