Answer: Rainbows are generated by the dispersion of sunlight by microscopic water droplets in the atmosphere, which are present in the air. A rainbow is always generated in the opposite direction to the Sun’s path of rays. The water droplets behave as if they were miniature prisms. They refract and spread the incident sunlight, then reflect it internally within the raindrop, and lastly refract it again when the sunlight exits the raindrop.