Why does iceland volcano lie there?

Answer 1

There are many volcanoes in Iceland because the country is situated on the Mid-Atlantic Ridge where new oceanic crust is being formed all the time.

Iceland is one of the few countries in the world which is growing in size every year.

Answer 2

Iceland lies on the Mid-Atlantic Ridge, a tectonic plate boundary where two plates are moving apart. This movement creates a lot of geologic activity, including volcanic eruptions. The volcanic activity in Iceland is a result of the movement of the plates and the presence of a hotspot beneath the Earth's crust in the region.