You are a park ranger in a dangerous mountain area. Late one afternoon, a group of hikers calls in on their cell phone: ``We're stuck up here. One of our friends broke his leg. I'm not quite sure where we are, since we left the trail a long time ago, but if you let the x-axis point to the east and the y-axis point north, then we're at a spot that looks like the graph of z = x2 - y2 if z is our elevation.'' The cell phone then dies, leaving you out of communication.
While it is true that the ranger station is at a higher elevation than the hikers, someone wasn't thinking clearly about location of the station. Notice that the contour labelled C on the map is higher than the ranger station (7600 feet versus 7500 feet) and thus blocks the view of anything on the other side. Therefore, the ranger cannot see the hikers from the station.
The lake is shaded in below. Notice that this lake has a depth between 0 and 100 feet since the entire area lies between two contours at 7000 feet. The island is the tiny area in the middle that is at the height of the shore. Since the hikers at A are at a higher elevation than the lake, and there are no ridges in the way, the hikers can see the lake.
The steepest direction is always where the contours are closest together. An approximate path for the stream is drawn below. Since it lies between the station and the hikers, you must cross it in order to approach them.