Let r be the radius of the circle whose centre is C and CM ⊥ x-axis, CN ⊥ y-axis.
∵  circle touches both the axes
∴   CM = CN = r
∴  C is (r, r)
∴  equation of circle is
(x - r)2 + (y – r)2 = r2    ...(1)
Differentiating both sides w.r.t.x,
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or           Â
or                  Â
Putting this value of r in (1), we get
                  Â
or     Â
or                          Â
or                               Â
which is the required differential equation.Â