To calculate average and instantaneous velocity from a graph, average velocity is determined by the formula v_avg = Δx/Δt, which represents displacement over time. Instantaneous velocity is found by calculating the slope of the tangent line at a specific point on the graph, equivalent to the first derivative of position with respect to time. The slope of the line connecting two points on the graph provides the average velocity between those points. A velocity-time graph can illustrate displacement, as the area under the curve between two time points represents displacement, not total distance. Understanding these concepts is essential for accurately interpreting motion graphs.