Transformers operate by increasing voltage while decreasing current due to the conservation of energy principle, where power input equals power output (Pp = Ps). The primary current is influenced by the load on the secondary side, meaning that as voltage increases in the secondary, the primary current must increase to maintain energy balance. The equations P=VI and V=RI are not contradictory; rather, they reflect how load resistance changes with voltage transformation. The magnetizing current, which establishes core flux, is negligible compared to the primary current in practical applications. Understanding transformer operation requires a grasp of how load resistance is transformed by the turns ratio, impacting current flow.