Introduction To Micro-Economics — Economics STD 11 — Question

Steps of deductive method:
→Step 1: The analyst must have a clear and precise idea of the problem to be inquired into.
→Step 2: The analyst clearly defines the technical terms used in the analysis. Further, the assumptions of the theory are to be precise.
→Step 3: Deduce hypothesis from the assumptions taken.
→Step 4: Hypotheses should be verified through direct observation of events in the real world and through statistical methods. [e.g.] There exists an inverse relationship between price and quantity demanded of a good.