Your understanding for the $\forall$ and $\exists$ quantifier is correct and also the analogy which you have created through Venn diagrams.
The First Order Formula $\forall x P(x) \implies \exists x P(x)$ is a valid formula if the domain is non-empty.
Case 1: Domain D $\in \emptyset$:
If the domain is empty then:
- The $\forall$ is true for any Predicate/Parameterised Proposition $P(x)$ because there is no element in D for which $P(x)$ will be false. i.e $\forall x (x \in D \implies P(x))$
- The $\exists$ is false for any Predicate/Parameterised Proposition $P(x)$ because there is no element for which $P(x)$ is true. i.e You cannot find a subset for which $P(x)$ will be true.
Therefore, $\forall x P(x) \implies \exists x P(x)$ will be false if the domain is empty because hypothesis/premise $\forall x P(x)$ is true but the conclusion $\exists x P(x)$ is false, hence implication will be false.
Case 2: Domain is non-empty:
If the domain is non-empty then $\forall x P(x) \implies \exists x P(x)$ is a valid formula.
A formula involving predicate variables is valid if it is true for every domain no matter how the predicate variables are interpreted.
Suppose take the interpretation for $P(x) :\text{'x' is a Prime number}$; Domain: $N$.
$\forall x P(x)$ says that all natural numbers are prime numbers, which is false i.e $\forall x P(x)$ is false.
$\exists x P(x)$ says that there is a sub-set of natural numbers which are prime numbers. i.e ${2,3,5,7,11,...} \subset N$, $\exists x P(x)$ is true.
Therefore, $\forall x P(x) \implies \exists x P(x)$ is vacuously true, as the implication is true when the hypothesis is false.
Suppose take another interpretation for $P(x) : \text{'x = x'}$; Domain: $Z$.
$\forall x P(x)$ says that all intergers are equal to itself which is true i.e $\forall x P(x)$ is true.
$\exists x P(x)$ says that there is a subset of intergers in $Z$ which are equal to itself which is true i.e $\exists x P(x)$ is true.
Therefore, $\forall x P(x) \implies \exists x P(x)$ will be true, as the implication is true when hypothesis and conclusion are true.