The figure shows the Doppler Shift when the source is moving. How does this relate to light from stars? Because the universe is expanding, light waves are compressed and see brighter from more distant galaxies.

Because the universe is expanding, light from galaxies shifts toward the red end of the spectrum

Because the universe is collapsing toward Earth, light from stars shifts toward the red end of the spectrum

Starlight has no relationship to the Doppler shift shown in the figure.