Answer:
$7.04.
Explanation:
The price after two reductions means that we have to multiply the initial price by 25% twice. Remember that 25% is equal to 0.25, because the percentage sign refers to a division by 100. So, the operation would be:
First reduction.
![12.50-12.50(0.25)=9.375](https://img.qammunity.org/2019/formulas/mathematics/high-school/d7qcrg4epdfy3if0o2zh67rxfm4au3njku.png)
Second reduction:
![9.375-9.375(0.25)=7.04](https://img.qammunity.org/2019/formulas/mathematics/high-school/4voy0liuzvofeq9vfqkb6fg3x9o17bpt8t.png)
Therefore, the final price after two reductions is $7.04.
PD: It's important to calculate each reduction separately, because the most common mistake is to do it in one go and miss a subtract process.