Avodah Zarah 73a Melting Pot or Tapestry - יין ביין בכל שהוא

How does the law of bittul - nullification (when something forbidden gets mixed with something permitted, if the quantities are small enough so that there is no felt experience of the forbidden substance, then it is nullified) work? Does the mixture take on the identity of the dominant, permitted substance, or does it retain its identity but may be ignored halachikly because its effect is not experienced?Source Sheet