Would any one let me know the correct usage of instead of?
Here, I have written an example.
In this example case, if we traverse from vertex 2 to 3, in stead of vertex 2 to 4, the problem can be solved.
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That is pretty much correct.
Another example, "Tonight we are having pasta instead of chicken for dinner."
You use "instead of" to signify choosing one thing over another without necessarily commenting on the merits of either.