To show rebellion and prove who they are. They are greasers!
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Dally and Ponyboy ran to the car and drove off to the hospital to see Johnny before he dies. The other greasers were all in Ponyboy's house.
The Greasers in the book are the poor kids from the "wrong side of the tracks" so they don't really know much about their rich enemies, the Socs. The Greasers (specifically Ponyboy and Johnny and Two-bit) find out more about the Socs when they go to the movies and meet Cherry Valance and her friend Marcia. They hang out with the two girls for a while and find out that they are not really all that different than the Greasers -- just that the Socs like the Beatles more than Elvis. They do find, however, that the Socs are less emotional than the Greasers and that they (at least Cherry) feel like their lives are less meaningful. The other way Ponyboy, at least, finds out more about the Socs is when Randy, the friend of Bob (who Johnny killed) talks to him a couple times -- once before the rumble, and once at Ponyboy's house. When he does that, he finds out that Randy has some of the same feelings he does about fighting and that Randy feels like he's let his dad down.
Back to the hospital to see Johnny, and give him the news that they won the rumble.
Ponyboy asks almost everyone why they like to fight. They all answer different things. Two-bit drinks a beer to relax him just before a fight. Soda says he likes the action of fights. Steve says he likes to beat the other guy and Soda says that Darry likes to show off his muscles. They all head outside and start doing tumbling passes. (backflips, no-handed cartwheels) They also call themselves greasers like they are proud of it and start yelling and chanting as they are walking to the vacant lot. Johnny and Dallas are still in the hospital so they are not present.
In Tulsa, Oklahoma. Same city where all the greasers live. He just lives 4 or 5 blocks away from Ponyboy. It doesnt show his house or say anything about it in the movie or neither in the book.