Although the water is transparent, and there are water droplets present in the fog then why are we not able to see things during fog?
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Fog shows up when water vapours or water in its gaseous form, condenses.
During condensation, molecules of water vapour combine to make tiny liquid water droplets that hang in the air. The fog disappears when the air temperature balances out with the temperature of the ground, and the water particles disappear- this happens most commonly during the morning to late morning hours.
Clouds are formed when the air contains as much water vapour (gas) as it can hold. This is called the saturation point, and it can be reached in two ways.
First, moisture accumulates until it reaches the maximum amount the volume of air can hold. The other method reduces the temperature of the moisture-filled air, which in turn lowers the amount of moisture it can contain.