help me to respond to two classmates.

Person 1

If i noticed an increase of my income, obviously I would be happy due to the fact that I know my work ethic and I deserve it, but in my opinion money does not buy permanent happiness, it temporary. normal good is an increase in demand due to an increase in a consumer's income. An inferior good describes a good when demand drops causing someones income to rise. To me, a normal good example would be buying a name brand product at the store. Yes, personally i would also buy a store brand product, but if my income is rising, I would treat myself. An example of an inferior good would be choosing the store name product (in which is the same to me as a name brand product). To me, it is the same product but cheaper so how could you go wrong. An increase in income would want me to consume more of normal goods rather than inferior goods because as mentioned, if my income is rising buying name products would not be a problem. However, its ok to also stick with low name brands due to the fact that they are simply the same.

Person 2

the service that clearly displays the law of diminishing returns and decreasing marginal utility is a subscription to an on demand streaming service such as Netflix, HBO, Hulu, Disney+, etc. The first time that someone purchases a streaming service, they unlock access to hundreds of new tv shows and movies that you would not be able to view before the purchase. After that, maybe some tv show comes along that is exclusively streamed through HBO, and the purchase of that second streaming service would allow the customer to access maybe 50-100 new titles, tv shows and movies. The marginal utility comes from the new happiness that the customer feels when they watch their new tv shows and movies that they now have access to. When a few months down the road, a Hulu exclusive movie comes out that peaks the customer's interest, and they may be tempted to subscribe to that service as well. This new added on service would only expand their possible movie and tv show library marginally, and the customer would only be satisfied with the addition of a few new titles. This marginal utility would be much smaller than the utility of streaming service number one as well as the marginal utility of streaming service two.