"Zwei Personen sind in dem Haus."
Translation:Two people are in the house.
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I'm not a native but from my understanding it works like this. The accusative case is used when the sentence expresses change of position or movement toward a place, while the dative case is used when the sentence expresses position or place within a fixed location.
So if there's movement you would use the accusative case; therefore, in, and if a fixed position is implied then dative, which would be im, for In + Dem. So accusative = in, oder in den und dative = in dem, oder im!
There are certain prepositions that always require the dative case ( IO ) such as mit, von, etc.. However, ' in '= dative if we're referring to location and ' in ' = accusative if we're referring to moving towards a location, etc.. Also, ' im Haus ' is slightly more awkward when speaking than in ' dem Haus '.