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Hello there teachers, 

I want to ask you a thing or two related to the following sentences, please. 

Here're the sentences:

Person A: It's a nice atmosphere. It ___________ (a. looks, b. look, c. is looking) like most of the people here are enjoying themselves

Person B: You're right! Everyone ___________ (a. has, b. is having, c. have) fun. 

OK let me talk about A's sentence first. The grammar site which I've taken it says that only a-looks is the correct answer, but would you please tell me why c-is looking is wrong or not possible? I think c-is looking is correct, too, becasue A is talking about something that is happening at this moment, at the time he speaks his/her sentence

Now let's talk about B's sentence. Here, the correct answer is b-is having, but why can't we choose 'has', please? When we say, for eg They have a big house or She has a cute little baby, they have that big house or she has that cute little baby at the time of speaking or when we say the sentences, then why can't we say 'has' in the sentence spoken by B above?

Thank you. 
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Laborioushe grammar site which I've taken it says that only a-looks is the correct answer,
Right.
Laboriouswould you please tell me why c-is looking is wrong or not possible?
There is no call for a durational use. 'Look' = appear, seem.
LaboriousHere, the correct answer is b-is having,
Right.
Laboriouswhy can't we choose 'has', please?
Because it is an activity, not possession. Only 'have' = 'possession' accepts simple present for 'now'.
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In the appropriate context, "You are looking very pretty" could suggest that the speaker thinks you don't normally look very pretty. This is unlikely to be said with this meaning, because it would almost certainly cause upset. However, my wife sometimes says to me "You are looking rather smart today". We both know that she is talking about something unusual - I normally look very scruffy.
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Comments  
Mister Micawber'Look' = appear, seem.
Do you say that there is a difference between saying "You look really very pretty" and "You are looking really pretty", please? Could / do they mean exactly the same thing?
LaboriousDo you say that there is a difference between saying "You look really very pretty" and "You are looking really pretty",
No, I did not say anything about that. I think you are losing the focus of your thread. We started with 'look like'.
LaboriousCould / do they mean exactly the same thing?
Yes; the latter expresses greater personal feeling, that is all.
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 fivejedjon's reply was promoted to an answer.
LaboriousPerson A: It's a nice atmosphere. It _________ (a. looks, b. look, c. is looking) like most of the people here are enjoying themselves.
Your source is correct on both counts. From a colloquial persepctive, I suppose no one would say you are wrong if you said to your cowork " you are looking sharp today !"