Greg Green is a schoolteacher who, during the summer months, operates a successful lawn mowing business. Before advertising his services in the local newspaper, Greg needs to decide on his rate, or price per lawn. Greg is keenly aware that the lower his rate, the more business he will get and vice versa. He is determined to figure this relationship out and select the price that maximizes his summer profit. After conducting some market surveys, Greg believes that the local summer demand is as follows:
Price Expected Demand
$32.50 ......... 300
$30.00 ......... 350
$27.50 ......... 400
$25.00 ......... 450
$22.50 .......... 500

Greg’s variable costs amount to $6 per lawn mowed, and his fixed costs total $3,000 for the summer.

Required:
What price should Greg charge to maximize his profit from mowing lawns?