Question: Is it true that elves or dwarfs exist? Is it true that elves or dwarfs exist?

Answer: Yes it is true that elves or dwarfs exist.  Elves don't but dwarfs do.  Congenital dwarfism is actually termed skeletal or chondrodysplasia and is literally premature closure of the growth plates or failure of the long bones to form properly.  Sometimes it is a genetic defect that interferes with bone growth, sometimes a pituitary disorder.
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