In my probability book, it says that to count the total number of subsets of n elements is a process of $n$ stages with binary choice of either adding this element to the subset or not to add it. Therefore, the total number is $$2^n$$
But, for instance, we have 3 elements, according to this formula, there are 2 to the power of 3 elements, namely 8, which are $${\emptyset},A,B,C, AB, AC, BC, ABC$$
However, I have a hard time of imagining the process or N stages binary choice that form this many subsets. Can anyone explain/help me to understand it? I mean, ABC, if we are making the choice of A, put it in or do not put it in, exactly which subset are we choosing to put in or not? Thank you.