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A new API version is created when you want to change a published API's behavior, authentication mechanism, resources, throttling tiers, target audiences etc. It isn't recommended to modify a published API that has subscribers plugged into to it.

After creating a new version, you encourage subscribers to adopt it by depreciating the old one after a period of time. During this time, the new version can be made available as a prototyped API for users to test their applications with, without subscribing. At the time you publish a new version of an API, you can select the Deprecate Old Versions option in the Lifecycle tab to automatically deprecate all previous versions of the typically deploy it as a prototype for early promotion. A prototype can be used for testing, without subscription, along with the published versions of the API. After a period of time during which the new version is used in parallel with the older versions, the prototyped API can be published and its older versions deprecated. 

You have created a new version of an API. In the next tutorial, you deploy this API as a prototype and test it with its older versions.