Both clouds and Fog are formed for the same reasons. Often damp and moist air cools and condenses at a ground level and forms clouds which are called Fog or Mist.
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This phenomenon can occur for various reasons. When moist air moves over a land surface which is very cool, the water vapour it contains condenses and fog is formed. Cold air is heavy and tends to sink, this is why the air tends to become stationary when fog is formed.
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