Let $\mu(z) = \frac{z-ia}{z-ib}$, $z=x+iy$, where $x,y, a, b$ are real, with $a
$$\mu(l)=\frac{x}{x+i(a-b)}.$$
We also know that Möbius transformations map lines to lines or circles in $\mathbb{C}$. But the problem is - I can see that $\mu(l)$ is not a line, but can't see how it is a circle.
Here's what I do:
-> Take the modulus^2 of the equation above to get
$$ \mu^2 = \frac{x^2}{ x^2+(a-b)^2 }.$$
-> After some algebra I get
$$ (x\mu)^2 + (a-b)^2\mu^2 - x^2 =0 $$
But is this a circle? Actually, WolframAlpha doesn't think so. What is it that I'm not doing right?