The top row shows where x- 7 is negative and positive- it is negative for all x< 7, positive for all x> 7.
The second row shows where x- 1 is negative and positive- it is negative for all x< 1, positive for all x> 1.
Since the product of two negative or of two positive number is positive while the product of one negative and one positive number is negative, the diagram shows that the product (x- 7)(x- 1) is positive for x< 1, where both factors, (x- 7) and (x- 1), are negative, positive for x> 7where both factors, (x- 7) and (x- 1), are positive, and negative for 1< x< 7 where (x- 7) is negative and (x- 1) is positive.