When can a story be considered a satire?

if it exposes and criticizes foolishness and corruption of an individual or a society, by using humor, irony, exaggeration, or ridicule.

Answer: A satire is a story that makes fun of a situation by over exaggerating characteristics of that time. A story may be funny or comical while still not fitting the category of satire. However, if the author stretches the truth to make light of a period in time, then it becomes a satire. A good example of a satire would be the book Emma by Jane Austen, in which the characteristics of the characters are more extreme and comical than they would have been otherwise.