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In this video tutorial, John from Excel Campus demonstrates how to increase the width and font size of a drop-down list in Excel. A common issue users face is the inability to read items in the drop-down list due to limited width. To resolve this, he suggests making the cell containing the drop-down list wider, as its display width is dependent on the cell's size. By adjusting the width of column C, users can view all items clearly in the drop-down. Additionally, he recommends checking the source list for the longest item to determine the necessary width adjustments.