Numerical Approximation: When a differential equation is impossible to solve algebraically, we iterate tiny local tangent lines to follow the true curve step by step.
The Algorithm: Starting at $(x_0, y_0)$, we step forward by $y_{new} = y_{old} + \frac{dy}{dx} \cdot \Delta x$. We re-evaluate the derivative at every new stop.
Truncation Error: Because tangent lines only point straight, concave curves will bend away, creating cumulative drift/error the larger $\Delta x$ gets.
Error Over/Under: Notice that when the true solution curve is CONCAVE UP, the local tangent lines fall entirely *under* the curve, forcing Euler's method into a systematic UNDERESTIMATE.