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Example of Wit

Wit is scholarly humor. Thinking quickly on your feet requires wit. The ability to snap back or to respond with an intellectual as well as entertaining response is witty.

Examples of Wit:

Person A: 'I'm sorry I wrecked your car.'
Person B: 'Don't be sorry, be careful.' (Said in a manner that's a little serious, but also playful.)
http://en.wikipedia.org/wiki/Wit
http://simple.wikipedia.org/wiki/Wit