1. When the price of an input decreases, the output effect (or real purchasing power effect) only predicts that, all else remaining constant,....
2. When the price of an input decreases, the substitution effect predicts that, all else remaining constant,...
3. When the price of two inputs to production both increase, but the price of input A increases more (proportionately) than the price of input B, the substitution effect only predicts that an optimizing producer would respond by....