Bernouilli's equation relates pressure, velocity, and elevation of a fluid. It states that for an incompressible fluid in steady laminar flow, the sum of pressure, kinetic energy, and potential energy remains constant along a streamline. The equation can be used to explain phenomena like lift in airplanes and increased grip in race cars. It also underlies devices like the Venturi meter that measure fluid speed based on pressure differences. However, Bernouilli's equation is only strictly valid for incompressible, nonviscous fluids with steady laminar flow.