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Despite the sources that ScottS cites, I believe this idea that you should use a new paragraph for a new person speaking is bogus. Paragraph rules are paragraph rules. You use a new paragraph for a...
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#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/34768 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/34768 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
Despite the sources that ScottS cites, I believe this idea that you should use a new paragraph for a new person speaking is bogus. Paragraph rules are paragraph rules. You use a new paragraph for a new thought. A new person speaking is often a new thought, but not always. In particular, dialogue that is incidental to action can often involve more than one person speaking in the course of a single moment of action that should clearly be written in one paragraph. > Tom said "Hello, baby," while Harry whistled and Dick tipped his hat to the lady. Splitting that into three paragraphs would clearly be absurd. As would splitting the following: > Tom said "Hello, baby," while Harry exclaimed "Yowza!" and Dick whispered "Oh boy!" under his breath.