Here's a combinatorial proof. Suppose
has
elements.
For a subset to contain
, it must consist of at least one element. So if any given subset has
elements, where
, then
is not one of the other
elements. This means the number of subsets containing
is
Put another way, we are choosing elements from
to form a subset of
elements. We want
to be in each subset, so we have
other elements of
from which to choose. Then we sum over all the possible sizes of the desired subset.
On the other hand, if we want to build subsets not containing
, then we have
total elements to choose from, and we can make subsets of size ranging from 0 to
, so the number of subsets not containing
is
We have
, and in the second sum we can shift the index up by 1 to get
which is the same as the first count.