To find the maximum population density, we need to determine the critical points of the function \( P(x, y) \). This involves taking the partial derivatives of \( P \) with respect to \( x \) and \( y \), setting them to zero, and solving the resulting system of equations. Once we find the critical points, we can evaluate \( P \) at these points to find the maximum density.
The population density function is given by:
\[ P(x, y) = -30x^2 - 20y^2 + 540x + 320y + 200 \]
This is a quadratic function in two variables, which represents a paraboloid.
To find the maximum population density, we need to find the critical points by taking the partial derivatives and setting them to zero.
\[ \frac{\partial P}{\partial x} = -60x + 540 \]
Set \(\frac{\partial P}{\partial x} = 0\):
\[ -60x + 540 = 0 \]
\[ x = \frac{540}{60} = 9 \]
\[ \frac{\partial P}{\partial y} = -40y + 320 \]
Set \(\frac{\partial P}{\partial y} = 0\):
\[ -40y + 320 = 0 \]
\[ y = \frac{320}{40} = 8 \]
The second derivative test for functions of two variables involves the Hessian matrix:
\[ H = \begin{bmatrix} \frac{\partial^2 P}{\partial x^2} & \frac{\partial^2 P}{\partial x \partial y} \\ \frac{\partial^2 P}{\partial y \partial x} & \frac{\partial^2 P}{\partial y^2} \end{bmatrix} \]
Calculate the second derivatives:
\[ \frac{\partial^2 P}{\partial x^2} = -60 \]
\[ \frac{\partial^2 P}{\partial y^2} = -40 \]
\[ \frac{\partial^2 P}{\partial x \partial y} = 0 \]
The Hessian matrix is:
\[ H = \begin{bmatrix} -60 & 0 \\ 0 & -40 \end{bmatrix} \]
The determinant of \(H\) is:
\[ \det(H) = (-60)(-40) - (0)(0) = 2400 \]
Since \(\det(H) > 0\) and \(\frac{\partial^2 P}{\partial x^2} < 0\), the critical point \((9, 8)\) is a local maximum.
Substitute \(x = 9\) and \(y = 8\) into the original function:
\[
P(9, 8) = -30(9)^2 - 20(8)^2 + 540(9) + 320(8) + 200
\]
Calculate each term:
\[
= -30(81) - 20(64) + 4860 + 2560 + 200
\]
\[
= -2430 - 1280 + 4860 + 2560 + 200
\]
\[
= 1910
\]
The maximum population density is \(\boxed{1910}\) people per square mile at \((x, y) = \boxed{(9, 8)}\).