Answer:
The correct version of the sentence that uses punctuation correctly is:
The restaurant, seeking more business, added new items to the menu and extended its hours.
Step-by-step explanation:
In this version, there are two correctly placed commas: one after "restaurant" to set off the introductory phrase "seeking more business," and another after "business" to set off the participial phrase "seeking more business" from the main clause. There is no comma needed after "menu" because "and extended its hours" is not an independent clause.