Formal vs Informal

"Alice, why should you dress nice for a formal occasion?"
"Simply, out of respect. Dressing up also presents you in a pleasurable manner well suited for a certain occasion. Not to mention how much judgment goes into presentation. If you wear baggy clothing or anything that stands out, people will think ill of you and will even think you're poor and worse, unintelligent."
"Why so much? Isn't there a way to--"
"Certainly not! Judy, of all people I'd expect this type of manner from someone else, not you. Wearing a suite an dress is traditional, in the norm, and as well as presenting yourself nicely to fit with your surroundings. Need I not repeat myself again."
"Okay...then what about informal."
"Oh, well that's a whole other story."
"Please, explain."
"Dressing informally is you being laid back and casual. Often times people dress casually for less important events, such as a picnic, hanging out with friends, or simply going to the grocery store."
"I see."
"Does that answer your question?"
"Perhaps, but I also want to know what to wear when the occasion is informal and formal."
"Then wear something in between. A nice top and nice bottom."
"Ohhhh"