How does this dialogue help create the setting of Bag-End? Consider the dialogue as Gandalf instructs Bilbo when at Bag-End at t
he story's beginning: "Put on a few eggs, there's a good fellow!" Gandalf called after him, as the hobbit stumped off to the pantries. It shows that Bag-End was cold and lonely. It shows that Bilbo's home was too small to fit all the dwarves. It shows that Bag-End was not well-stocked with food. It shows that Bag-End was large, with many pantries, and that it was comfortable for guests.
The tone, or attitude, is the way the narrator is trying to get across to make you feel. They are trying to show how they are feeling without directly saying it.