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In this video tutorial, John from Excel Campus explains how to increase the width and font size of drop-down lists in Excel. A common issue arises when items in a drop-down list are cut off and hard to read. To resolve this, users can make the cell wider by adjusting the column width. For example, if column C is expanded, the full drop-down items become visible. John also suggests checking the source list to identify the longest item, ensuring that the drop-down's width accommodates all entries effectively.