To determine this, we can find the equation of the tangent line to the curve at an arbitrary point P: (x1 , y1) on the parabola. As you will see, we will be able to write this equation solely in terms of the parameter x1:
Given P on the curve y =x2 , we know that y1 = x12 so P: (x1 , x12). We also know the slope of the tangent line is given by y' = 2x , so the slope of the tangent line thru P will be m = 2x1.
Using pt-slope form of the line, we get the equation as y - x12 = 2x1(x - x1). Here y and x are the true variables.
If the pt (a , b) lies on this tangent line, it satisfies the tangent line equation above, so we substitute y= b, x = a:
b - x12 = 2x1 (a - x1). Distributing and gathering all terms on the left-hand side gives the following ...
x12 - 2ax1 + b = 0 which we can interpret as a quadratic equation in the variable x1. The discriminant is ...
4a2 - 4b which we set > 0 for 2 solutions, = 0 for 1 solution only, and < 0 for no solutions.
Two solutions: 4a2 - 4b > 0. a2 > b which corresponds to the region in the plane consisting of all points below the parabola (in other words, all the points lying in the exterior of the curve).
Similar logic reveals that points on the parabola have only one tangent line that passes through them, while any points above the curve y = x2 have no tangent lines that intersect them.