Meaning of Derivative

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$\frac{d}{dx}\psi(x,y)=\frac{∂\psi}{∂x}+\frac{∂\psi}{∂y}\frac{dy}{dx}$ .

My interpretation is that the left-hand side is the partial derivative of x.

The right hand is the partial derivative of x, plus the partial derivative of y times the derivative of y with respect to x.

I am absolutely confused. Which is the partial derivative, and what does y have to do with x, aren't they BOTH independent variables??

Doesn't y being expressed as a function of x defeat the entire purpose of a multivariable function??

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In my opinion this is much more clear if we don't suppress inputs to functions. Here it is in different notation:

Suppose $f(x) =\Psi(x,y(x))$ for all real numbers $x$. Then $f'(x) = D_1\Psi(x,y(x)) + D_2 \Psi(x,y(x)) y'(x)$ for all real $x$.

Here $D_1 \Psi$ is the partial derivative of $\Psi$ with respect to its first input, and $D_2 \Psi$ is the partial derivative of $\Psi$ with respect to its second input. I am assuming $\Psi$ and $y$ are differentiable functions.