A represents the tangent line. B represents the secant line.

The difference quotient is the rate of change of a secant line. The formula for finding the difference quotient is: y2-y1/x2-x1. A secant line touches the graph twice.
Difference Quotient:
We can find the derivative by using the difference quotient.
Initially, the derivative is when we evaluate the limit (lim -> 0) of the difference quotient. It helps us find the slope of the tangent line (touches the graph once) in a graph. We do this because the smaller the delta x (h/change) is, the more the secant and tangent line resemble each other. We use lim -> 0 in order to make the delta x as small possible (a function can have diff. derivatives at the value of x). :)
Work Cited:
Graph: http://www.analyzemath.com/calculus/Differentiation/difference_quotient.html
Diff. Quotient image: http://www.coastal.edu/mathcenter/HelpPages/Difference%20Quotient/img001.GIF
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