Rainbows are formed by reflection, refraction and dispersion of light in water droplets in the sky. What this means is that the water droplets scatter (or separate) the light from the sun into some of its constituent wavelengths which allowing us to see all of the colours of the rainbow.
This is similar to an experiment you might have seen in your science book where a glass shape called a prism is used to separate light and show the colours of the rainbow – it looks like this
Sorry for the late response, some of the questions have only just come through for me now! I think the website is acting up!
So on to answering your question. There are water droplets in the sky and when the sun shines on these droplets, the sunlight gets dispersed (or split up) into its 7 colours: red, orange, yellow, green, blue, indigo and violet. This dispersion of light then creates what we know to be a rainbow!
It generally happens after it rains as this is when the air contains lots of water droplets!
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