Question: Are characters sometimes based on people we know?
Answer: Absolutely, though it is usually best to make a character a combination of a few people you know.
Also, you're going to change a few things about a character. For instance, you may put them in a different setting or situation, or give them a dramatic role in the story that they might not have played in real life. Ask a few "what if" questions to discover the changes you'd like to make.
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