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When does an electric short circuit occur?

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If the insulation of the live wire and the neutral wire gets damaged then the two wires touch each other. This touching of the live wire and neutral wire is known as a short circuit. In this situation, resistance of a circuit decreases to a very small value. Due to this, the current flowing through the wires becomes very large and heats the wires to a very high temperature, and a fire may be started.

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