Why is the answer of $\frac{ab}{a+b}$ always smaller than the smallest number substituted?
If $a,b>0$ then $a<a+b$ and $\dfrac a{a+b}<1$ so $\dfrac {ab}{a+b}<b$.
A similar argument shows that $\dfrac{ab}{a+b}<a$.
Another way to think about it: Assuming $0<a\leq b$, divide the top and bottom of your fraction by $b$ to get
$$\frac{a}{\frac{a}{b}+1}.$$
$a$ is the smaller number and you're dividing it by a number greater than one, so the result is smaller than $a$.