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The video tutorial demonstrates using fraction circles to represent improper fractions and mixed numbers. It explains that one circle equals one unit and instructs to determine the improper fraction representing the shaded portion of the circles. Each circle is divided into 8 equal pieces, which is the unit. The total shaded pieces are counted as 8, 8, and 2. Multiplying 8 by 3 gives the final result of 24, which is the improper fraction.