Here are two proofs of Pascal's Identity.
Algebraic Method:
\begin{align*}
\binom{n - 1}{r - 1} + \binom{n - 1}{r} & = \frac{(n - 1)!}{(r - 1)![n - 1 - (r - 1)]!} + \frac{(n - 1)!}{r!(n - 1 - r)!}\\
& = \frac{(n - 1)!}{(r - 1)!(n - r)!} + \frac{(n - 1)!}{r!(n - r - 1)!}\\
& = \frac{(n - 1)!r}{(r - 1)!(n - r)!r} + \frac{(n - 1)!(n - r)}{r!(n - r - 1)!(n - r)}\\
& = \frac{(n - 1)!r}{r!(n - r)!} + \frac{(n - 1)!(n - r)}{r!(n - r)!}\\
& = \frac{(n - 1)!(r + n - r)}{r!(n - r)!}\\
& = \frac{(n - 1)!n}{r!(n - r)!}\\
& = \frac{n!}{r!(n - r)!}\\
& = \binom{n}{r}
\end{align*}
Combinatorial Method: A subset of $r$ elements can be selected from a set of $n$ elements in $$\binom{n}{r}$$ ways. Suppose we wish to select $r$ elements from the set $\{x_1, x_2, \ldots, x_{n - 1}, x_n\}$. There are two possibilities. The subset either contains the element $x_n$, or it does not. If $x_n$ is one of the $r$ elements in the subset, we must select $x_n$ and $r - 1$ elements from the subset $\{x_1, x_2, \ldots, x_{n - 1}\}$, which can be done in $$\binom{1}{1}\binom{n - 1}{r - 1} = \binom{n - 1}{r - 1}$$ ways. If $x_n$ is not one of the $r$ elements in the subset, we must select $r$ elements from the subset $\{x_1, x_2, \ldots, x_{n - 1}\}$, which can be done in $$\binom{n - 1}{r}$$ ways. Hence, the number of ways of selecting $r$ elements from a set with $n$ elements is
$$\binom{n}{r} = \binom{n - 1}{r - 1} + \binom{n - 1}{r}$$