Suppose aiyanna's pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very little business. aiyanna now decides to lower pizza prices by 5 percent per week for an indefinite period of time. we can expect that each successive week:
a. demand will become more price elastic.
b. price elasticity of demand will not change as price is lowered.
c. demand will become less price elastic.
d. the elasticity of supply will increase.

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.