Black or White in a toddlers world

I am beginning to see that Reilly thinks in black and white and gray is not part of his world yet... many things have reinforced this theory to me, but most recently this is what happened:

"Reilly, ask Daddy if he's grumpy"
"Daddy, are you grumpy"
"No, I'm hungry"
"No, no, Daddy, I said grumpy not hungry"