Expression and shape of neighbourhoods in $\mathbb{R^2}$?

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A neighbourhood in $\mathbb{R^2}$ can be an open ball of the form

$U(a, b) = ${${f(x, y): \sqrt{ (x - a)^2 + (y - b)^2} < r}$} for some $r>0 $.

However, it is also possible to have a rectangular neighbourhood of a point ($x_0,y_0$) such as:

($x_0-a,x_0+a$) x ($y_0-b,y_0+b$).

Does it make a difference to use one rather than the other? I found the second in the Implicit function theorem, but what does this imply? Why don't we use a general neighbourhood of undefined shape, since we don't know its boundaries?

Thanks in advance!