CLOUD FORMATION
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A cloud is composed of millions of little droplets of water (or ice crsytals when temperature is very low) suspended in the air.
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Hence a cloud can form, when water vapour becomes liquid, i.e. when the humid air is cooled and condenses on tiny particles.
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There are several steps of cloud formation.
Water vapour present in air
Warm air along with water vapour rises in the atmosphere
Water vapour condenses on dust particles to form tiny droplets of water
Several tiny water droplets come together to form a cloud