Step 1: Concept
Each element in a set has two choices: either to be in a subset or not to be in it.
Step 2: Analysis
For $n$ elements, the total number of combinations is $2 \times 2 \times \dots \times 2$ ($n$ times).
Step 3: Conclusion
Total number of subsets $= 2^{n}$.
Final Answer: (B)