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All these lines have a so-called line box, which encloses all the content of its line. Once there are more elements than fit into the current line, a new line is created beneath it. Inline-level elements are laid out next to each other in lines. They can have a width and height (possibly defined by its own content) as well as padding, a border and margin. Inline-block elements are what their name suggests: block elements living inline. Inline elements are basically tags wrapping text.
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Vertical-Align Acts On Inline-Level Elements In a Line Box