When something is graduated, it goes step-by-step or by degrees, such as a graduated income tax that has different tax rates for different levels of income.
Fees for a fishing license might be graduated, depending on how big the fish you’re trying to catch is. If you're fishing for little porgies, the license might cost $3, but if you're going for a shark, the fee might be $50. A measuring cup is a graduated container — it has lines on the side that mark out divisions, in this case, ¼ cup, ½ cup, and so on.
