The stars appear higher in the sky than they actually are due to atmospheric refraction (A). As starlight travels through the Earth’s atmosphere, it passes through layers of varying density. When light moves from a less dense medium (space) into a denser medium (the atmosphere), it bends towards the normal. This bending, or refraction, increases as the atmosphere’s density increases closer to the Earth’s surface. Because of this gradual bending, the path of the starlight is curved, causing the stars to appear at a higher position in the sky than their actual location. This effect is more pronounced when stars are near the horizon, as the light has to pass through a thicker layer of the atmosphere, resulting in more significant refraction. This phenomenon explains why stars and other celestial objects seem to be slightly displaced from their true positions.