I just ran into that very equivalence the other day when doing some Knights and Knaves puzzles!
Here is an example:
A very special island is inhabited only by knights and knaves. Knights always tell the truth, and knaves always lie.
You meet two inhabitants: Bart and Mel. Bart claims, “Both I am a knight and Mel is a knave.” Mel tells you, “I would tell you that Bart is a knight.”
Can you determine who is a knight and who is a knave?
Now, to put this into logic, we can just use:
$B:$ Bart is a knight
$M:$ Mel is a knight
Since what anyone says is true if and only if they are a knight, we can symbolize the provided information as:
$$B \leftrightarrow (B \land \neg M)$$
$$M \leftrightarrow (M \leftrightarrow B)$$
To solve this, we'd like to do some algebra ... but how do you simplify $B \leftrightarrow (B \land \neg M)$? Or, more general: how can we simplify $P \leftrightarrow (P \land Q) $?
Well:
$$P \leftrightarrow (P \land Q)\iff$$
$$((P \land Q) \to P) \land (P \to (P \land Q)) \iff$$
$$(\neg (P \land Q) \lor P) \land (\neg P \lor (P \land Q)) \iff$$
$$(\neg P \lor \neg Q \lor P) \land (\neg P \lor P) \land (\neg P \lor Q) \iff$$
$$\top \land \top \land (\neg P \lor Q)) \iff$$
$$(\neg P \lor Q)) \iff$$
$$P \to Q$$
So there you go: $$(P \land Q) \leftrightarrow P \iff P \to Q$$
And, of course, now that I started it, we need to solve the puzzle! OK, so we have:
$$B \leftrightarrow (B \land \neg M) \iff B \rightarrow \neg M$$
but also:
$$M \leftrightarrow (M \leftrightarrow B) \iff (M \leftrightarrow M) \leftrightarrow B \iff \top \leftrightarrow B \iff B$$
... so Bart is a knight, and hence by $B \rightarrow \neg M$, Mel is a knave.
BONUS:
Here is another Knights and Knaves puzzle:
A very special island is inhabited only by knights and knaves. Knights always tell the truth, and knaves always lie.
You meet two inhabitants: Bob and Mel. Bob tells you, “At least one of the following is true: that I am a knight or that Mel is a knave.” Mel claims, “Only a knave would say that Bob is a knave.”
Can you determine who is a knight and who is a knave?
OK, so now we have:
$$B \leftrightarrow (B \lor \neg M)$$
$$M \leftrightarrow (\bot \leftrightarrow \neg B)$$
Hmm, does $B \leftrightarrow (B \lor \neg M)$ simplify? Yes, it turns out that in general: $$P \leftrightarrow (P \lor Q) \iff Q \rightarrow P$$
(I'll leave that as an exercise for you!)
Anyway, I've dubbed these equivalences:
Knight's Rule: $$P \leftrightarrow (P \land Q)\iff P \to Q$$
Knave's Rule: $$P \leftrightarrow (P \lor Q) \iff Q \to P$$