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Why does micelle formation take place when soap is added to water? Will a micelle be formed in other solvents such as ethanol also?
  
Soap molecules have two ends with various properties. One end is , which dissolves in water, and another is , which dissolves in hydrocarbons. When soap is added to water, the ionic end of soap will form a unique direction and keep the tail away from it.
The cluster of molecules is created in which the hydrophobic tails are in the interior of the cluster, and the ends are on the cluster's surface. Hence, micelle formation takes place.
 
Soap is in ethanol; hence the micelle formation will not occur.