This is the "correct" solution. You guys are right, there are other solutions possible, but this is the simplest solution.
I forgot to mention that this was a multiple choice problem. Theoretically, I'm sure that if you made the function convoluted enough with multiple operations, you could prove that the other answers were correct as well. But 80 is correct because it requires the fewest operations. I suppose I should have put that in my orignial problem (the fewest operations is the correct one).
Congrats to those who solved it, either method.
There are an infinite number of solutions, with the "correct" solution being the prettiest but not the simplist. If the function is of the form x@y=z, then the solution with the fewest coefficients (aka the simplist) is:
z = (9/8)*(x-1)*y = -(9/8)*x + (9/8)*x*y
Congrats to the people who said: 81.
The psychologically correct solution is:
z = (x-1)(y+1) = xy - y + x - 1
This yields: 80 as an answer. This solution looks pretty, and happens to resemble an elementary theorem. Although, it is a misquote of the theorem.
There are no solutions of the form: z = a + b*x + c*y, for any real numbers a,b and c. There are an infinite number of solutions of the form: z=a + b*x + c*y + d*x*y, for real a, b, c, and d, with c and d not equal to zero. I didn't bother analyzing the general 2nd order case with z=a+b*x+c*y+d*x^2+e*x*y+f*y^2, because a vast number of solutions are possible. Formally, a 2nd order solution would include all second order terms, meaning if the x^2 and y^2 should be included.
It makes sense this question came from an IQ test, because the answer is the psychologically correct answer and not the mathematically optimal answer.