Price discrimination: a. by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.
b. is not covered by federal laws, but in some states it is illegal.
c. is always illegal.
d. may be legal if the firm can prove that different prices were set based on different costs.
e. none of the above is true

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.