Why Is This Paradoxical?
The experiment is described by some as a "paradox" as it seems, at first sight, to violate Faraday's law of electromagnetic induction, because the flux through the disc appears to be the same no matter what is rotating. Hence, the EMF is predicted to be zero in all three cases of rotation. The discussion below shows this viewpoint stems from an incorrect choice of surface over which to calculate the flux.
The paradox appears a bit different from the lines of flux viewpoint: in Faraday's model of electromagnetic induction, a magnetic field consisted of imaginary lines of magnetic flux, similar to the lines that appear when iron filings are sprinkled on paper and held near a magnet. The EMF is proposed to be proportional to the rate of cutting lines of flux. If the lines of flux are imagined to originate in the magnet, then they would be stationary in the frame of the magnet, and rotating the disc relative to the magnet, whether by rotating the magnet or the disc, should produce an EMF, but rotating both of them together should not.
Read more about this topic: Faraday Paradox