2. which instance in the pricing model is good both service wise and cost wise?

Reserved Instances (or Savings Plans) are the best choice as they guarantee server capacity while providing up to a 72% discount compared to On-Demand pricing.
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EBS means elastic block store. It's purpose is to act as a virtual hard disk for EC2 instances.
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EBS means elastic block store. It is virtual hard disk for EC2 instances.
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