Answer:
First, we need to find the area of one block:
Area of one block = length x width = (1/10) mile x (1/10) mile = 1/100 square mile
Since there are 500 blocks in the town, the total area of the town is:
Total area of town = 500 blocks x (1/100) square mile/block = 5 square miles
To find the population density, we divide the population by the total area:
Population density = population / total area
Population density = 80,250 / 5 = 16,050 people per square mile
Therefore, the population density of the town is 16,050 people per square mile.