RASTER GRAPHIC
Raster graphic is made up of set grid of pixels, so each pixel has a little bit of information which makes up your image so let's say you have a 250 pixel square photograph of a flower but you need to make that flower image 500 pixel square so take the image into your computer and increase the size of the image, what your computer does is it takes the 250 pixels that you have and it stretches them so that it will fill a new 500 pixel space but in doing that what you end up with is a blurred image. Raster graphics aren't the best for enlarging of images file formats that you associate with a raster image are png file, gif file, jpeg file, and tiffs file.
VECTOR GRAPHIC
Vector graphics is completely different to Rasters graphics because they're made up of lines and points almost mathematical equations and because they're made up of lines and points and not pixels it means that if you resize a vector image all that's happening is that your computer just needs to readjust the equation for the lines and the points to make the image bigger and by doing so that means your images will always remain pin sharp no matter what size you change your vector graphic to file formats that you will associate with vector would be eps, svg, and pdf. A quick think about PDFS in the majority a pdf file will be a vector but you can still save a raster image as a pdf file what this will not do though it change your raster image into vector so be aware of that when you're saving out your raster images.
What happens when you zoom in and out of Vector and Raster graphic
On the left we have Vector graphic and over here on the right we have the Raster graphic, they both look very sharp and clear this is where we'll see the difference between a raster and vector graphic. When you zoom in on to the vector graphic image this is still all incredibly sharp, if we zoom in on the raster graphic you can see how the computer had to fill in a lot of the space with extra pixels.