The characters in the story are Basil, Lord Henry & Dorian Gray. Basil is a painter (artist) while Henry & Dorian are his 2 best friends. Justification :- "Harry, I can't quarrel with my two best friends at once, but between you both you have made me hate the finest piece of work I've ever done."
It's not given where exactly they are but seeing that Dorian flinged himself on the divan & leaped from the couch & rushed over to Hallward ,we can say that they were most likely in the hall of Basil's house. We chose Basil's house as he had his painting over there.
They were fighting & talking about how the painting was just canvas & colour & how the painting was so beautiful & will always remain that beautiful while a person's beauty can fade away too. Justification:-1st & 2nd paragraph.
Dorian would most probably be shocked, scared & surprised when he saw his friend about to tear the painting. He told "it would be a murder" because the painting was a portrait of Dorian & he felt it was a part of himself. Justification:-Last line of theextract.
