In this example, the variable $text contains the text that needs to be formatted. The auto_p function is then used to automatically add paragraph tags to the text, and the resulting output is sent to the browser using the echo statement. The "auto_p" function is part of the PHP Markdown library, which is a package that makes it easy to convert plain text to HTML using Markdown syntax. This library includes a number of useful functions and classes for working with Markdown-formatted text, including the "markdown" function, which can be used to convert Markdown to HTML.