Question: > 
> Let $n$ and $k$ be positive integers with $n \ge k$.
>  Give a combinatorial proof that $$n\_k = (n-1)\_k + k(n-1)\_{k-1},$$ where $n\_k$ is a falling factorial: $n\_k$ = $n(n-1)(n-2)\ldots(n-k+1)$.
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I know $n\_k = n \cdot (n-1)\_{k-1}$.
For example $10\_4 = 10 \cdot 9\_3$, which equates to: $10 \cdot 9 \cdot 8 \cdot 7 = 10 \cdot (9 \cdot 8 \cdot 7)$. 

However, I am completely lost on how to extrapolate $n\_k = (n-1)\_k + k(n-1)\_{k-1}$ from $n\_k = n \cdot (n-1)\_{k-1}$.

I can work out numerical examples in my head and it makes perfect sense, but I'm missing something and I dont know what it is that I'm missing.

Answer: 
$n\_k$ represents the number of arrangements of $n$ elements in groups of $k$ (the order is relevant here). Split those arrangements into two classes: those where one particular element is part of the group and those where this element is not part of the group. The number of the latter is $(n-1)\_k$ because you choose among the rest. The number of the former is $k(n-1)\_{k-1}$ because you choose $k-1$ among the remaining $(n-1)$ and there are $k$ possible locations for the fixed element.
I don't know the notation which you have used(I am still new in combinatorics). So I will use simple factorial notation. 
$$\frac{n!}{(n-k)!}$$  

$$=\frac{{((n-k)+k)}\cdot{(n-1)!}}{(n-k)!}$$  

$$=\frac{(n-1)!}{(n-k-1)!}+\frac{k(n-1)!}{(n-k)!}$$  

$$=(n-1)\_k +k(n-1)\_{k-1}$$