The problem
Your professor should not give you complete circuit solutions as if they came from God but should formulate the problem and show you the way to solve it step by step. And it is very simple - figuratively speaking, to "move" itself an AC voltage with some value, e.g. 5 V. The same task is solved in bias circuits, voltage doublers, etc.
DC implementation
"Shifting" voltage source
To solve it, we need to add a 5 V constant voltage to the input AC voltage. So, we connect a 5 V DC voltage source in series to the input source Vin.
simulate this circuit – Schematic created using CircuitLab
Run Time-Domain Simulation and you will see that Vin is moved up by 5 V.
This is a conceptual circuit where anything is possible. In real circuits, however, it is not convenient to use such "floating" voltage sources because the power supply is grounded; charged capacitors are used instead. For purposes of understanding, however, it is convenient to initially think of capacitors as "rechargeable batteries". This allows us to explore circuits with the convenient CircuitLab Live DC Simulation.
Ideal diode
Let's start from the very beginning with the problem that is solved by the simplest clamping circuit - "self-shifting" AC voltage by the value of its amplitude (for example, 1 V).
Vin > 0: During the positive half wave, the "capacitor" is quickly charged through the diode D to Voffs = Vin (for simplicity, I have used an "ideal" diode with VF = 0 V from the CircuitLab library).
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Vin < 0: During the negative half wave, the "capacitor" voltage Voffs is added to Vin (I have vertically flipped the input source to see the polarities better), and the sum Vout = -Vin - Voffs = -2 V appears at the output. The diode is reverse biased and has no effect (as if it is not there).
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The result of this is that the input voltage appears at the output shifted down by 1 V (by its amplitude), and for some reason beyond my understanding, this is called "clamping".
Ideal "Zener diode"
We continue to follow the circuit evolution by improving the circuit...
In practice, it has become necessary to set this offset with a given value. Then they may have noticed that VF of the "bad" diodes they used was subtracted from Vin in the loop and the capacitor charged to a lower voltage; accordingly, Vin shifted less.
Vin > 0: So if we raise the voltage across our diode to 6 V (in the CircuitLab parameters window), the "capacitor" will charge up to 5 V, and the input voltage will drop that much. But wait... the polarity is reversed! So the input voltage will shift up with 5 V.
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Vin < 0: During the negative half wave, the input voltage (1 V) is subtracted from the "capacitor" voltage Voffs (5 V). As a result, the negative input voltage appears shifted up to 4 V at the output. This voltage is less than the "Zener" voltage (6 V); so the "Zener diode" has no effect (as if it is not there).
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Real Zener diode
Real Zener diodes have the undesired (in most cases) feature when forward biased to behave like regular diodes (with VF = .7 V). We can solve this problem by connecting a forward-biased Si diode in series to the Zener diode (selected so that their total voltage is 6 V). This will also help us to get the exact 6 V value.
The operation of the circuit is the same as the one above.
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simulate this circuit
AC implementation
Although the circuit seems to work fine let's make sure by passing an initial (bias, quiescent) current through the diodes produced by an additional voltage source Vref and a resistor R in series. We also replace the emulating source with a real capacitor. Thus we get the OP circuit and decide to investigate it.
Unloaded
The capacitor needs to be recharged from time to time. If the load has a high resistance, this will happen very briefly when the diodes conduct.
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Loaded
But if the load has a low resistance, the capacitor will discharge more and require a longer charging time. As a result, the shape of the signal is distorted.
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The role of Vref-R
However, I do not understand the use of that battery voltage in series with the resistance. How does it contribute to the design?
The Zener diode (and the whole D-Z network) acts as a voltage stabilizer; we can think of it as a 5.4 V (6 V) voltage source.
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Problem: But it is not a perfect "voltage source"; its IV curve is not strictly vertical but exponential. I have obtained it by the help of the DC Sweep Simulation applying a variable (sweeping) DC input voltage.
So when the current through it is too small or varies, the voltage across it is also small and varies, and this is the case here. As you can see in the unloaded circuit above, only a small charging current periodically flows through the D-Z diode network.
Solution: To keep its voltage constant, the (Zener) diode needs a more significant constant current. It is provided by the network Vref-R that acts as a simple 1 mA current source. But instead of "philosophizing" a lot, let's see it in practice by removing the network... how easy it is here!
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The result confirms our assumptions - there is no current flowing, Vin and Vc are almost equal, there is no shift...
Simplification
Finally, we ask ourselves the question, "Why is the diode necessary at all?" We come to the conclusion that this is only for obtaining a total voltage drop of 6 V. In the CircuitLab library, we find a suitable Zener diode that provides this voltage by itself, and thus simplifies the circuit.
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As you can see, the graphical results are the same as above.
Generalization
The circuit of the diode clamper reminds us of something familiar - the diode rectifier. And indeed, if we compare them, they turn out to be the same device consisting of three elements in a loop - an AC voltage source Vin, a diode D and a capacitor C. In both, the AC input voltage is rectified by the diode and the capacitor is charged to its amplitude. The diode is switched on only for short moments (when the capacitor is recharging) and has almost no effect on the load.
Diode circuits
Clamper: Here, the load is connected in series to the capacitor.
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As a result, the input voltage is "shifted" by the value of the capacitor voltage (AC + DC voltage is applied to the load).
Rectifier: In this case, the load is connected in parallel to the capacitor.
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As a result, only the capacitor DC voltage is applied to the load.
Zener diode circuits
Clamper: By changing the (Zener) diode forward (backward) voltage, we can adjust the "shifting" voltage.
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As a result, the input voltage is "shifted" by a higher value.
Rectifier: In this case, the voltage drop (VF = .7 V) across the diode is undesired.
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... since a lower voltage is applied to the load.