My first intuition was to think $P(\{\text{No two bdays coincide}\}) = \displaystyle{\frac{\binom{365}{n}}{365}}$ given $365 \ge n$. Turns out $P(\{\text{No two bdays coincide}\}) = \displaystyle{\frac{365 \cdot 364 \cdots (365 - n + 1)}{365^n}}$. Why is it important we line up the people instead of simply dealing with subsets? What do we undercount when we solve this problem according to my initial intuition? Thanks.
Edit: Came here to understand the combinatorial reasoning behind the question, but I got a much better (obviously, personal opinion) answer based on probabilistic reasoning. That answer might be beneficial to future students struggling to grok the classical solution to this problem. Here it is below:
Let $A_i$ be an event where the $i$th person shares bday with none of the $n−1$ people. Then we have $P(\bigcap_{i-1}^n A_i) = P(A_1)P(A_2\mid A_1)P(A_3\mid A_1, A_2)\cdots P(A_n\mid A_1,\ldots A_{n-1}) = \frac{365}{365} \cdot \frac{364}{365} \cdots \frac{365 - n + 1}{365}$