It's fine to use symbols to abbreviate thought but you if you treat them as some sort of magical substitute for thought, you only get in trouble.
For example, in your first attempt at the proof you write down the step:
(x=0 or y=0) <=> xy=0 (What is the postulate defining the operation I just made?)
It isn't clear what you thought you were deducing this statement from. If you were trying to deduce it from the statement
then you were trying to deduce from the statement that you are attempting to prove, which wouldn't make sense.
To prove a statement with an "if and ony if" condition in it, it is often simplest to break this into two implications. So "for each pair of real numbers x,y , xy = 0 if and only if x = 0 or y = 0" can be proved by proving these two statements separately:
1) "for each pair of real numbers x,y, if (x = 0 or y = 0 ) then xy = 0 "
2) "for each pair of real numbers x,y, if (xy = 0) then x = 0 or y = 0.
To prove an "if... then..." statement, we are allowed to assume the "if..." part is true.
To prove statement 1, you need to refer to some assumption or theorem that tells you that 0 times another number is 0. You can assume x = 0 or y = 0. You can break that into two cases if you need to: Case 1) x = 0 Case 2) y = 0 . (The case of both x= 0 and y = 0 is treated by either one of those cases. The "or" in mathematics is not exclusive.)
To prove statement 2. Dickfore suggests you use the contrapositive. The contrapostive of a statement of the form "If A then B" is the statement "If not B then not A". These two forms of a statement are logically equivalent, so if you can prove the contrapositive of a statement, it proves the original statement.
The contrapostive of the if-then part of the statement "for each pair of real numbers, if (xy = 0) then x = 0 or y = 0" is "for each pair of real numbers if( it is not true that (x = 0 or y = 0) then it is not true that xy = 0)"
To prove this we may assume "it is not true that (x = 0 or y = 0)". This is equivalent to assuming "x is not zero and y is not zero" by one of DeMorgans laws of logic. This law states that a statement of the form "not(A or B)" is equivalent to the statement "(not A) and (not B)".
Dickfore did not mention this, but his suggested method of proof employs proof by contradiction. In this method of proof we assume the negation of the then-part of the if-then statement and show that this implies a statement that contradicts the if-part or some other assumption or theorem.
Our if-part is equivalent to the statement that "x is not zero and y is not zero".
The negation of the then-part is "not (it is not true that xy = 0)" , i.e. "xy is 0".
In summary, we may take these facts as given:
x is not zero
y is not zero
xy = 0
You need to find the assumption or theorem in your text that states the fact that a non-zero number has a multiplicative inverse. Using that as justification, we may multiply the equation xy = 0 on both sides by the multiplicative inverse of x. This gives the new equation (1)y = 0 so y = 0. This contradicts the fact that y is not 0. Hence we have accomplished proof by contradiction.
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Many people write proofs without stating that they are using DeMorgan's laws or contraposition or proof by contradiction or other principles of logic. Many people acquire the skill of using these rules simply by reading proofs in books. They come to think of such laws as "common sense". I don't know whether you teacher expects explain your use of logic in detail or whether you are allowed to proceed with "common sense". It might help if you glance at a book on elementary symbolic logic. I don't think you need go deeply into it in order to get the hang of things like contrapostiives and DeMorgan's laws.