Faraday’s induction law is clearly demonstrated here. The magnetic field lines emanating from the end of the bar magnet are fringed. As the magnet is moved towards or away from the coil’s center (or as the magnet is held stationary and the coil moved), the magnetic flux through an imaginary surface bounded by the coil’s loops varies in time. As a consequence, an induced electric field in the coil produces a current that is evident on the ammeter.