On the x-axis, if the number of "slices" is high, you have a high sample rate.
On the y-axis, if the number of "levels" (or possible discrete values) is high, you have a high bit-depth.
To clarify the second one, if you were to lower the bit-depth, you would limit the number of discrete values the amplitude could be in your music, and you would hear "stepping". It's actually a common effect used in electronic music. I'm sure you've heard it before.. Listen: http://www.youtube.com/watch?v=BbsrIebJ2Bw
Increase either and you're increasing the bit-rate of the music. i.e, number of bits per second.