How does the use of quotes in PHP affect variable parsing and escape characters?

When using quotes in PHP, it is important to understand how they affect variable parsing and escape characters. Single quotes ('') treat everything literally, meaning variables are not parsed and escape characters are not recognized. Double quotes ("") allow for variable parsing and recognize escape characters. To ensure proper variable parsing and escape character recognition, use double quotes when needed.

$name = "John";
echo "Hello, $name!"; // Output: Hello, John!