Lets have an example scenario:
Client opens a web site and finds the sum of two numbers which he enters from the textboxes.Then clicks on the ADD button.Two parameters a
There is little difference between web application and web services.
Web Application: In web application when user request any data then the server embeds the response into some HTML and forward it to the user and on browser the HTML is rendered.
While in web services it's done differently that when some user requests for some data then the server returns it a json or XML array of objects and the data can be displayed by anyway the web designers wants.
Thanks Hope it resolves the matter.