Each speaker gets a separate paragraph.
“Punctuate like this,” the teacher said, “or you’ll never be a good writer.”
The woman in the first seat glared at him. “At the beginning you told us there were no rules. Now – rules of punctuation. I hate punctuation.”
“That’s the old Yin-Yang for you,” the teacher said. “Rules and no rules.
“The next subject in our book is…”
What a phony, the woman thought.
Note that there is no quotation mark after rules. The teacher is still talking, but he changes the subject. To indicate that he’s still talking the next paragraph begins with a quotation mark. “The next subject…..
Note the punctuation in the first sentence where the dialogue is interrupted by the ‘teacher said.’
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