Is it possible to manually fire an "applicationSuspend" event manually? Using dispatchEvent function or something similar? I thought it would be helpful to pause my game.

(My guess is you can't generate Runtime events, so it is not possible... still thought i would ask)
If that is the case, what is the best way to pause my game?

Even if you could generate an applicationSuspend event, you still have to write the handler for it, so create your own lua/corona function

local function onSuspend()
end

and then have the event handler for the system event call your onSuspend() function and when you need to suspend on your own, call your function.

aapplicationSuspend pauses all transitions and listeners right?

If I write my own function, I will have to keep track of each and every transition, timer and listener and pause them manually, which would be a pain in the ass.

Hence I was hoping for the applicationSuspend route! :)