It's commen sense actually,it's due to diff in air pressure by pressing it creates low pressure and outside is a gap higher pressure thus fluids movie from outside(high pressure to low pressure)to the inside of the dropper.
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Well as you press the top of the dropper you create a vacuum that forces the medicine (on the outside of the dropper therefore in at a higher pressure than inside the dropper when releasing the rubber) to enter through the hole at the bottom of the apparatus
An eye dropper is a small tube with a flexible bulb on one end and a narrow opening on the other that is used to measure drops of a liquid. A medicine eye dropper is an ordinary eye dropper, just used to dispense medicine.