What is the function of “would have” here? does it refer to a hypothetical situation? or does it mean: the people who laughed at Aslan, laughed at stories about Talking Beasts and Dwarfs as well.
“But who believes in Aslan nowadays?”
“I do,” said Caspian. “And if I hadn’t believed in him before, I would now. Back there among the Humans the people who laughed at Aslan would have laughed at stories about Talking Beasts and Dwarfs. Sometimes I did wonder if there really was such a person as Aslan: but then sometimes I wondered if there were really people like you. Yet there you are.”