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The second part was about continuity -- you'd already defined a function -- so I was really just looking for $\lim_{(x,y)\to (a,b)}f(x,y)=f(a,b)$.
In the third part I wanted an application. Why is this mathematics useful?
Here is "the most important definition in calculus" -- the limit definition of the derivative function, $f'(x)$: \[ f'(x) = \lim_{h \to 0}\frac{f(x+h)-f(x)}{h} \]
This is what we want to generalize.
We think of $y$ as fixed in this derivative. It's not varying. Only $x$ is varying; is variable.
And here's the partial with respect to $y$: \[ f_y(x,y) = \lim_{h \to 0}\frac{f(x,y+h)-f(x,y)}{h} \]
They're easy to compute, actually: e.g., for $f_x$, just imagine that $y$ is a parameter, and differentiate in the univariate way with respect to $x$.
The figures on p. 928 give us this idea very nicely (I hope that my "slicer" from last time does, too).
We think of second derivatives in the univariate world as saying something about curvature, and the same is true in the bivariate case.