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NATALYA: It was too much, Ivan Vassilevitch.

LOMOV: I think it was very cheap. He’s a first-rate dog.

NATALYA: Papa gave 85 roubles for his Squeezer, and Squeezer is heaps better than Guess!

LOMOV: Squeezer better than Guess? What an idea! [laughs] Squeezer better than Guess!

NATALYA: Of course he’s better! Of course, Squeezer is young, he may develop a bit, but on points and pedigree he’s better than anything that even Volchanetsky has got.

LOMOV: Excuse me, Natalya Stepanovna, but you forget that he is overshot, and an overshot always means the dog is a bad hunter!

NATALYA: Overshot, is he? The first time I hear it!

LOMOV: I assure you that his lower jaw is shorter than the upper.
Explanation:

Natalya was shocked to hear Lomov say he spent $$125$$roubles for his dog because she had assumed he had paid a hefty sum for such a dog. However, Lomov claimed it was extremely low for a superior dog like Guess. She said they bought Squeezer, far superior to Guess, for just 85 roubles. Natalya's claiming  that Squeezer was superior to Guess made Lomov laugh uncontrollably. Still, Natalya disagreed with his opinion, claiming that she thought Squeezer was superior to Guess, given Squeezer's youth and potential for future growth. Furthermore, she said Squeezer was superior to Volchanetsky in terms of pedigree and points, surpassing them.

Lomov emphasised that her Squeezer was overshot, indicating that he is poor in hunting. When Lomov claimed that Squeezer was overshot, she disagreed. As a result, Lomov's statement that Squeezer's lower jaw is smaller than his upper jaw served as more confirmation of his previous statement.
Reference:
National Council of Educational Research and Training (2007). The Proposal - Anton Chekov (pp. 142-161). Published at the Publication Division by the Secretary, National Council of Educational Research and Training, Sri Aurobindo Marg, New Delhi.