This already contains many counterexamples, so I'm not seeking any more of them;
I'm interested in learning about my errors with the notation and definitions.
Richard Hammack P213 Defintion 12.9: Suppose $f : A \rightarrow B$ is a function.
I. If $S \subseteq A$, then the image of S is defined as the set $f(S) = \{ \, f (s) : s \in S \, \} \quad \subseteq B.$
$1.$ $f(s) \in f(S)$ means: There exists $s \in S$ that effects $f(s)$. So why does this not imply $s \in S$ ?
In view of user2357112's answer, I still don't perceive the falsity. Even if I write it as "There exists $t \in S$ such that $f(t) = f(s)$", then I'm still operating on something (now $t$ instead of $s$) in $S$?
$2.$ Do we simply apply $f$ to both sides of: $\qquad s \in S$,
to effect $f(s) \in f(S)$? Is there a deeper explanation? What qualifies one to "apply f"?