Question : Bandwidth and Latency.

Could someone please explain how these elements relate to each other?

Answer : Bandwidth and Latency.

Bandwidth, typically measured in bits per second, is the rate at which data flows over the network - depending on the size of the pipe, i.e. 28.8 modem up to 45Mb T-3 for WAN links and up to Gigabit Ethernet on the LAN.
Latency is the time that elapses between a request for information and its arrival, usually measured in ms. Many factors can affect the latency between any two points--protocols used (Ethernet, frame-relay, PPP, ATM), realiability of equipment, distance, number of hops, etc.

The obvious goal of any network is to provide the highest bandwidth with the lowest latency.

http://mictlan.sfsu.edu/~murphy/latency/ppframe.htm

This is a pretty good article with examples of the differences between bandwidth and latency:
http://www.tidbits.com/tb-issues/TidBITS-367.html#lnk4