The Basics of Vertical Translations
Imagine you have a single point.
Then you take that point and move it vertically (up or down) a certain number of units. In this case moving the point up 4 units.
Now picture doing that same movement to every single point on a graph. In this case it takes the entire line and moves the line up 4 units.
Remember there are an infinite number of points that make up the graph, only a few are shown with an arrow moving them, but all of them are moving.