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Consider the function \[f(x,y) = x^2 - y^2.\] To illustrate the surface \(z = f(x,y)\), we can try to imagine how the traces look like when fixing \(x\) or \(y\). For example, if we fix \(y\), i.e. set \[y = k = \text{constant,}\] then the trace along the surface is defined by \(z = f(x,k) = x^2 -k^2\), which is a parabola opening upward and shifted down by \(k^2\).
The shape of the surface will be apparent if we put all the traces together.
You may see this in 3D if you have a pair of red-cyan 3D glasses.
This surface is called a hyperbolic paraboloid because the traces parallel to the \(xz\)- and \(yz\)-planes are parabolas and the level curves (traces parallel to the \(xy\)-plane) are hyperbolas. The following figure shows the hyperbolic shape of a level curve.
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Joseph Lo