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In this tutorial, the concept of solving equations with multiple unknown variables is explained using a simple example. The scenario involves determining the number of adults and children staying at a hotel with a total of 120 guests. By assigning variables to represent the unknown quantities (adults as 'a' and children as 'C'), an equation is formed (a + C = 120). If the value of one variable is known (e.g. 40 adults), the value of the other variable can be calculated by isolating it in the equation. This process allows for the determination of values for multiple unknowns in an equation.