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The tutorial demonstrates how to compress or increase image size using a sample picture of 1.47 MB. To increase size, open Chrome browser, type pi7 image tool, click on the official website link, select image, set desired size in kilobytes (e.g. 2500 KB), and press increase size. To compress size, select image, set desired size in kilobytes (e.g. 200 KB), and press compress image. The tutorial provides step-by-step instructions for both methods.