What occurs when an overflow happens in arithmetic operations?

When an overflow occurs in arithmetic operations, the values exceed the maximum storage capacity of the data type being used, causing them to wrap around to the minimum value that can be represented by that data type. For instance, if you are using an 8-bit signed integer that can represent values from -128 to 127, adding 1 to 127 would result in an overflow, and the resultant value would "wrap around" back to -128.

This behavior is fundamental to how many programming languages handle arithmetic operations with fixed-size data types. It allows for efficient use of memory but can lead to unexpected results if the programmer is not aware of potential overflow conditions. Understanding this concept is crucial for avoiding logical errors in calculations and ensuring that applications handle numerical values safely and effectively.