Kbase Article of the Week: Macintosh Quadra: Support for 16-Bit Color →

Apple Support:

The Quadra 700 and 900 don’t support 16-bit color (thousands of colors). This was a feature added to the Quadra 950. A different chip containing a CLUT (Color Lookup Table) that could support 16-bit color was included in the redesign of the Quadra 950.

The ability to support this many colors isn’t dependent on the size of the screen, but it influences the amount of VRAM you must have installed.