I'm trying to show that given a metric $d(x,y)$ show that $d_0(x,y) =\frac{d(x,y)}{1+d(x,y)}$ is also a metric..
It's trivial to show the first two properties, that is, $d_0\geq 0 $ & for $x=y \Longleftrightarrow$ $d(x,y) =0$ and that $d_0(x,y) = d_0(y,x)$.
However, how would I go about showing that $d_0(x,y) \leq d_0(x,z) +d_0(z,y)$. This is a bit tricky for me.
Here's what I've done so far.
$$d_0(x,y) = \frac{d(x,y)}{1+d(x,y)}\leq \frac{d(x,z)+d(z,y)}{1+d(x,z)+d(z,y)}=\frac{d(x,z)}{1+d(x,z)+d(z,y)}+\frac{d(z,y)}{1+d(x,z)+d(z,y)}$$
I'm not sure where to proceed from here.
Consider the function $f(t)=\frac{t}{1+t}$, this is a monotonic increasing function, since $f'(t)=\frac{1}{(t+1)^2}\ge0, \forall t\in \mathbb{R}.$
Thus for $s$ positive $f(t)\leq f(t+s)$, now apply the triangle inequality to get your desired result.
So we get $d_0(x,y)=\frac{|x-y|}{1+|x-y|}\leq \frac{|x-z|+|z-y|}{1+|x-z|+|z-y|}=\frac{|x-z|}{1+|x-z|+|z-y|}+\frac{|z-y|}{1+|x-z|+|z-y|}\leq \frac{|x-z|}{1+|x-z|}+\frac{|z-y|}{1+|z-y|}$
=$d_0(x,z)+d_0(z,y)$
Thus $d_0(x,y)\leq d_0(x,z)+d_0(z,y)$.