When the indicator is set initially, the index tube contains liquid up to zero mark and the right hand tube contains the indicating solution up to the level of index tube. Now when the current flows through the heater, the air inside the bulb consisting of the heater expands and causes the liquid of right hand limb to spill into index tube.
The greater the magnitude of current passing through the heating element of the indictor, the greater the expansion of liquid, and therefore, grater is the quantity of liquid overflowing in to the index tube. Now there will be not further overflow of the liquid in to the index tube until and unless the current passing through the heating element of the indicator surpasses the previous value. Hence the liquid in the indeed tube gives a true record of the maximum current drawn by the consumer during any given period.
Instrument does not record the momentary heavy current, since the instrument operates on the principle of heat production, which takes time.
Is there any machanism to reset the unit back to zero?
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