The 'setLocation' line, if placed in the act method or a method that the act method calls, alone will cause the object to fall -- fairly quickly. The 'setSpeed' line will drastically slow down the entire scenario and should not be used for a specific class of objects. (I said "drastically slow down" because you are not adding 20 to the running speed of the scenario, but setting the speed to 20 out of 100 where normal speed is at 50).
The '7' will be the falling rate and at a world height of 400, each falling object will probably hit the bottom of the world in less than one second.