Final answer:
The equation can be modeled by the situation described in option C: The cost of an item including 8% sales tax is $1.25 less than the cost of the item without sales tax.
Step-by-step explanation:
This equation can be modeled by the situation described in option C: The cost of an item including 8% sales tax is $1.25 less than the cost of the item without sales tax.
To solve the equation, we can start by subtracting x from both sides to isolate the term with the sales tax: 0.08x = 1.25.
Next, divide both sides by 0.08: x = 1.25/0.08.
Using a calculator, the value of x is approximately 15.625. Thus, the cost of an item without sales tax is $15.625 and the cost of the same item including 8% sales tax is $15.625 - $1.25 = $14.375.