What do you do when people start being funny to you verbally?

You mean when they tell me something that makes me laugh?

I laugh.

Raise one eyebrow and then retaliate with my superior wit.

*edited the question description

@Lightlyseared

Will you reply with the same amount of sarcasm or simply take it easy and play with it?

I think an example would help.

Sometimes it’s easy to mistake intended humor for an attack in a text-based environment. I often tease my friends, that’s my sense of humor, and I have inadvertently hurt people’s feelings. That doesn’t seem to have stopped me, though. I just apologize and continue being a jerk!

It completely depends on what mood I’m, sometimes I’ll just ignore it, sometimes I’ll engage in a bit of friendly banter and trade insults and sometimes I’ll just call them on it and ask WTF they meant by that.

It depends on how far they went. My dad and sister have a sense of humor that compels them to make jokes at other people’s expenses. They often cross a line with their jokes, but I learn to shrug it off most of the time. Other times, however, they go way too far and are just plain hurtful. So, if the joke was just a bit raunchy, I’ll usually let it slide. But if the joke is clearly hurtful, I’ll definitely speak up.

If someone started being really sarcastic or insulting towards me in a conversation? First, I replay the conversation in my mind, quickly. Did I say something that could have been insulting towards the other person? What happened in the conversation to make it turn into more of an insulting conversation? After I do that, I ask what is going on and why they feel the need to insult me. I don’t get overly defensive, that just makes things worse.

In that case I usually have a, “was I suppose to be listening to you”, attitude.

When I’m at work, I don’t want jokes when I ask a question. If they’re determined to waste my time, I’ll leave.

To answer the updated question, I assume that everybody likes and that it was meant as a joke (I realise that this might not be true but lifes too short to worry about whether or not random people you meet like you).

I start being funny to them physically.

When I’m not sure I understand what some says to me, I ask them. If it sounded like a joke, I say “I,m not too good with sarcasm, was that supposed to be funny?” or if it sounds like an insult, “That sort of made me feel bad, you didn’t mean it as an insult did you?”

Why wonder? If you can’t read minds, and I know I can’t, just ask.

rofl @Bluefreedom just state your feelings clearly and with no malice or offence unless their a total jerk they’ll be cool with it..sometimes people blurt out stuff they dont mean or are just in a mood