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Given the limit: $$\lim _{\Delta t\to 0}\frac{\Delta x\Delta y}{\Delta t}$$ where both x and y are function of t. Is this equivalent to derivative of product or something similar?

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Good question, it indeed is not equivalent to taking the product of two derivatives. But, as you are about to see, your intuition was fairly close.

$$\lim_{\Delta t \to 0} {{\Delta x \Delta y} \over {\Delta t}}=\lim_{\Delta t \to 0} {{\Delta x} \over {\sqrt{\Delta t}}} \cdot \lim_{\Delta t \to 0} {{ \Delta y} \over {\sqrt{\Delta t}}}={{dx} \over {dt^{1/2}}} \cdot {{dy} \over {dt^{1/2}}}$$

So the result is the product of two Alpha Derivatives. In short, the alpha derivative "smooths over" areas of a function with a near infinite rate of change. So, for well behaved functions,

$$\lim_{\Delta t \to 0} {{\Delta x \Delta y} \over {\Delta t}}=0$$

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