My follow up question is, "when I move an image into Pictures is it automatically duplicated in Photos?"
No. Photos is a database. Like every db it needs to have the data imported to it.
And, can my edited Photos (from Photos) be stored in Pictures so they are not in two places (both Pictures and Photos)? Anotherwords, if I move the edited photos back to Pictures can I delete them from Photos?
It's a bit more complicated than that.
Photos is a photo manager (like Contacts.app is an address manager, iTunes is a media manager etc). It has a couple of special characteristics.
1. Non-Destructive editing. When you edit a shot in Photos the original file is never touched, but preserved. The changes you make are written to the db and only committed to a version when you export/email/print the photo. This means you can go back and change your mind on edits, it means you can have multiple versions of a shot etc, and all without taking up additional disk space.
2. It replaces the Finder for everything to do with your photographs. In other words, import them to Photos and then when you want to edit, share or whatever with a photo, you access it via Photos. There are a couple of advantages to this: a: it's infinitely easier to find a shot then looking a files in the Finder. b: It can be used with any editor you like. 3. The Library is available in every app on your Mac - email apps, word processors whatever.
Think of it this way: you can store your addresses in individual text files in the Finder. Then try find the address every time you need one. Or, use the Contacts app to manage all of that. Same with your photos.
But it is a different way of working and can take a little getting used to. So, experiment. What I will say is that anything - and I do mean anything - you need to do with your shots can be done via Photos, and more easily than with the Finder. If you have specific how-to questions by all means ask them.
The only thing that makes no sense is trying to use both together. It's overly complex, and wipes all the key advantages of Photos. So, pick one horse and ride it, is my best advice.
