Why is demultiplexing of AD0 - AD7 lines required?

Demultiplexing of AD0-AD7 lines is required to separate address and data signals in microprocessor communication, particularly in systems where address and data share the same lines. This process enables the microprocessor to identify which operation (either addressing memory or transferring data) is being performed at any given moment. By demultiplexing these lines, the system can ensure that data is accurately routed to and from the correct locations without confusion, improving efficiency and performance in data handling.