The Pythagorean theorem gives . Taking a total differential gives , so
The area of the right triangle is , so the product rule gives and
The prescribed small changes therefore give : the area decreases by approximately . For comparison, retaining the product of the two finite percentage changes gives , an exact decrease of ; the total differential retains only the first-order terms.
Put . Apply implicit differentiation with respect to and , using the chain rule:
Consequently
At a point where the assumed differentiable function exists, the first equation forces . Combining the equations therefore gives
The assertion is understood on such differentiable branches of the implicit function; arbitrary parameter choices need not produce one everywhere.
The scaling relation says that is a homogeneous function of degree . Fix and differentiate the identity with respect to the positive parameter . The chain rule gives
Setting proves the Euler theorem for homogeneous functions identity
Differentiate once more with respect to , using equality of the mixed partial derivatives for the assumed twice continuously differentiable function:
At this is the second-order Euler identity for homogeneous functions:
The repeated parameter differentiation accounts for the factor , rather than .

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